Bank of America: 2Q‘26 Earnings: Solid Quarter, Supportive Credit Quality Remarks, Margins to Expand, and Stable CET1

Research evidence excerpt

Bank of America: 2Q‘26 Earnings: Solid Quarter, Supportive Credit Quality Remarks, Margins to Expand, and Stable CET1

Kabir Caprihan, CFA AC North America Credit Research

(1-212) 834-5613 14 July 2026 J P M O R G A N

kabir.x.caprihan@jpmorgan.com

Total non-interest income totaled $15.6bn, up 22% YoY, and 7% QoQ, above market

expectations of $14.6bn. To briefly highlight a few business segments, GWIM revenues were

$6.9bn, up 16% YoY, driven by higher asset management fees, reflecting higher market

valuations and solid AUM flows. Global Banking reported revenues of $6.2bn, up 10% YoY,

driven primarily by higher investment banking fees, net interest income, and treasury service

charges. Global Markets revenues were $8bn, up 34% YoY, driven by higher sales and trading

revenue and investment banking fees. Specifically, FICC revenues increased 9% YoY to

$3.5bn, driven by credit products and commodities.

Average loans for 2Q'26 were $1.2tn, up 6% YoY and 1% QoQ, driven primarily by growth

in Markets, GWIM, and Global Banking. The breakdown of commercial to consumer loans

exposure is 60%/40%, roughly unchanged YoY and QoQ. Looking ahead, management

expects loan growth to continue, with commercial loans growing in the mid-to-high single

digits and Card to grow low-to-mid single digits.

Average deposits were $2.0tn, up 1% YoY and -1% QoQ, with modest growth driven from

Global Banking. Looking at total deposit rate paid, BAC averaged 1.46%, down 30bp YoY

and down 1bp QoQ. The firm experienced a decrease in deposit costs across all product

segments, which was mainly driven by declining base rates.

As for credit quality, the firm’s charge-off ratio was 0.47%, an 8bp decrease YoY and 1bp

decrease QoQ. Total net charge-offs were $1.4bn, down -7% YoY and a 20bp increase QoQ.