$BAC · BANK OF AMERICA CORP /DE/
Bank of America filed its Q3 2026 10-Q, reporting net income of $6.933B ($0.91 EPS) on revenue of $29.958B (+3.2% YoY). The bottom line fell 16.8% from $8.332B a year ago as noninterest expense surged $2.385B to $19.722B, with other noninterest expense alone rising $1.939B. Provision for credit losses held steady at $1.269B.
- Net income dropped to $6.933B in Q3 2026 from $8.332B in Q3 2025, a 16.8% decline.
- Total noninterest expense jumped 13.8% YoY to $19.722B, driven by a $1.939B spike in other noninterest expense.
- Revenue rose 3.2% YoY to $29.958B, with net interest income up 7.9% to $16.610B.
- Provision for credit losses was essentially flat at $1.269B vs. $1.295B a year ago.
- Global Markets net income fell 25.1% YoY to $1.235B; All Other segment loss widened to $1.353B from $103M.
BAC closed regular session down 2.21% at $50.01; extended-hours trading shows a modest +0.14% recovery to $50.08, suggesting the expense-driven earnings miss was largely priced in during the regular session.
A 16.8% profit drop at a $346B mega-cap bank on surging expenses signals operational cost pressure that could persist into FY2027.
BAC's 13.8% expense surge contrasts with peers who have emphasized cost discipline. The 7.9% NII growth reflects the rate environment's continued benefit to large banks' lending margins, though expense control remains the key differentiator this earnings cycle.
The filing highlights October 2026 consent orders related to anti-money laundering and economic sanctions compliance programs. Forward-looking risk disclosures also flag potential losses from Zelle network fraud litigation and Visa/Mastercard interchange fee reductions.