Bank of America NII Rises 10% to $15.8 Billion
The largest U.S. bank by assets returned $8.4 billion to shareholders in the final period of 2025.
Net interest income grew 10% year-over-year to $15.8 billion in the final period of 2025. Bank of America (BAC) attributed the gain to Global Markets activity, fixed-rate asset repricing, and higher deposit and loan balances, though lower interest rates partially offset these drivers.
Growth in the balance sheet supported the interest income trajectory. Average loans and leases increased 8% year-over-year to $1.17 trillion, with growth occurring across every business segment. Average deposit balances reached $2.01 trillion, a 3% sequential increase that marked the 10th consecutive quarter of sequential growth.
Noninterest revenue was supported by gains in markets and asset management. Sales and trading revenue increased 10% year-over-year to $4.5 billion, led by a 23% increase in Equities revenue to $2 billion and a 2% increase in FICC revenue to $2.5 billion. Asset management fees rose 13% year-over-year to $4.1 billion, reflecting higher market valuations and strong AUM flows. Total investment banking fees, excluding self-led deals, increased 1% year-over-year to $1.7 billion.
Capital returns increased as the bank shifted its distribution. Bank of America returned $8.4 billion to shareholders in the final period of 2025, consisting of $2.1 billion in dividends and $6.3 billion in share repurchases. This contributed to a 41% increase in total capital returned to shareholders in 2025 compared to 2024. The CET1 ratio (Standardized) decreased to 11.4% from 11.9% in the same period the prior year.
Credit quality metrics showed improvement in the consumer space. The net charge-off ratio decreased 3 bps sequentially to 0.44%. Specifically, the credit card charge-off rate improved to 3.40%, down from 3.79% in the same period the prior year. The provision for credit losses was $1.3 billion, a decrease from $1.5 billion in the same period the prior year.
Operating leverage improved as the efficiency ratio fell 194 bps year-over-year to 61%. Noninterest expense increased 4% year-over-year to $17.4 billion, attributed to investments in technology, brand, and people, alongside revenue-related incentive and transaction expenses.