Bank of America tops Q1 estimates, raises full-year NII growth outlook

Transcript intelligence

What changed

Revenue and EPS beat consensus, net interest income rose 9% YoY to $15.9 billion, the efficiency ratio improved to 61%, ROTCE reached 16%, deposits crossed $2 trillion, and loan balances grew nearly 9%. Management raised its full-year NII growth outlook from 5-7% to 6-8%. In the prior quarter, BAC had reported Q4 revenue up 7% to $28.4 billion and EPS up 18% to $0.98 with NII up 10%, while keeping guidance maintained; the tone this quarter shifted to an explicit guidance raise.

Guidance delta

Raised full-year 2026 net interest income growth guidance to 6-8% after a 9% YoY increase in Q1, up from the prior-year plan of 5-7%; maintained a 200-300 bps operating-leverage target.

Key takeaways

• Revenue and EPS beat expectations, with growth across all segments.
• Net interest income grew 9% YoY and full-year NII guidance was raised to 6-8%.
• Operating leverage improved: efficiency ratio 61%, ROTCE 16%.
• Deposits surpassed $2 trillion with among the lowest funding costs of large U.S. banks.
• Capital remained strong with CET1 above $200 billion and $9.2 billion returned to shareholders.

Management priorities

• Invest further in relationship managers and digital platforms.
• Expand AI and technology initiatives to improve productivity.
• Keep expense growth disciplined while targeting 200-300 bps of operating leverage for the year.
• Continue capital returns while monitoring CET1 against regulatory requirements.
• Monitor and adapt to Basel III Endgame and G-SIB framework developments.