Bank of America Corp (BAC.N): 2Q26 Preview – Positive Conference Updates + Manageable Bar Sets Up Good 2Q Earnings

Research evidence excerpt

Bank of America Corp (BAC.N): 2Q26 Preview – Positive Conference Updates + Manageable Bar Sets Up Good 2Q Earnings

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22 Jun 2026 16:05:00 ET │ 15 pages

Bank of America Corp (BAC.N)

2Q26 Preview – Positive Conference Updates + Manageable Bar Sets Up

Good 2Q Earnings

CITI’S TAKE Buy

Recent conference commentary was constructive, with management Price (18 Jun 26 16:00) US$56.20

indicating NII tracking toward the high end of its guidance range and

Target price US$66.00↑ markets revenues better than prior ~15% y/y outlook, supporting

400bps+ of operating leverage in 2Q. We see ~6% upside to consensus from US$62.00

PPNR heading into earnings largely on stronger banking/trading fees, Expected share price 17.4%

though we would expect Street numbers to move higher following return

conference updates. Sentiment on BAC has remained somewhat debated Expected dividend yield 2.1%

(Figure 3), with focus centered around NIMs vs NII dollar growth, leaving Expected total return 19.5%

the hurdle into earnings relatively manageable in our view. Our NIM Market Cap US$398,828M

estimates sit marginally above consensus as we view BAC’s margin as

more defensible given fixed-rate asset repricing tailwinds, partially offset

by somewhat higher deposit costs as we bake in continued mix shift away

from DDAs (currently ~26% of deposits and trending toward 25% in 2027). Benjamin GerlingerAC

We raise our TP to $66 from $62 and reiterate our Buy rating. +1-212-816-3538

benjamin.gerlinger@citi.com

Estimate Changes — Our 2026E EPS increases 20c to $4.60 (vs. FactSet consensus Mikhail Mrotchek

of $4.47), 2027E EPS 50c to $5.30 (vs. FactSet $5.06), and 2028E EPS 45c to $5.90 +1-212-816-2345

(see Figure 1 for more detail). BAC reports 2Q26 earnings on 14 July. misha.mrotchek@citi.com

Kaili Wang, CFA