Bank of America (BAC) posted a strong performance in the second quarter of 2025, driven by steady gains across revenue, earnings, and balance sheet metrics. Net income rose to $7.1 billion, up from $6.9 billion a year ago, while diluted EPS climbed 7% year-over-year to $0.89. Total revenue, net of interest expense, grew 4% YoY to $26.5 billion, supported by a robust 7% increase in net interest income (NII) to $14.7 billion—marking the fourth consecutive quarter of NII growth.

The bank maintained disciplined cost control, with noninterest expense at $17.2 billion, up 5% YoY but down $587 million sequentially. Asset quality remained stable, with net charge-offs and provision for credit losses flat at $1.5 billion and $1.6 billion, respectively. Strong capital levels were also a highlight, with a CET1 ratio of 11.5%, well above regulatory minimums, and book value per share rising 8% YoY to $37.13.

Segment performance showed broad-based strength. Consumer Banking generated $3.0 billion in net income on $10.8 billion in revenue, up 6% YoY, with card spend and digital engagement both continuing to grow. The division added approximately 175,000 net new checking accounts, marking its 26th straight quarter of growth. Global Wealth and Investment Management (GWIM) saw net income of $1.0 billion, with revenue up 7% YoY to $5.9 billion and client balances increasing 10% to $4.4 trillion.

Global Banking posted $1.7 billion in net income, though revenue declined 6% YoY to $5.7 billion amid softer investment banking activity and lower leasing revenue. Still, average deposits in the segment surged 15% YoY. Global Markets delivered a standout quarter, with net income of $1.5 billion and sales and trading revenue up 14% YoY to $5.3 billion, including 16% growth in FICC and 10% in equities—its 13th consecutive quarter of YoY growth in this segment.

On the capital side, BAC returned $7.3 billion to shareholders, including $5.3 billion in share buybacks and $2.0 billion in dividends. Management announced an 8% dividend increase to $0.28 per share beginning in Q3 2025, reflecting confidence in capital strength and improved stress test outcomes.

CEO Brian Moynihan emphasized continued momentum in loan and deposit growth, healthy consumer activity, and resilience in credit metrics. CFO Alastair Borthwick highlighted strong balance sheet positioning and improving card charge-offs, alongside consistent investments in technology and talent.

Looking ahead, the bank reaffirmed its full-year NII growth guidance of 6–7%, expecting a Q4 exit rate between $15.5 billion and $15.7 billion, and maintained its 2025 noninterest expense growth outlook of 2–3%. Asset quality is forecast to remain stable, with slight improvement expected on the consumer side.

Overall, Bank of America’s Q2 results reflect solid operational execution, sustained client engagement, and a prudent approach to risk and capital deployment, positioning the bank well for the remainder of 2025.