Bank of America Corp (BAC.N): 2Q26 Review - Top-Line Strength + Better Oplev Drives Estimates Higher

Research evidence excerpt

Bank of America Corp (BAC.N): 2Q26 Review - Top-Line Strength + Better Oplev Drives Estimates Higher

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15 Jul 2026 05:00:00 ET │ 15 pages

Bank of America Corp (BAC.N)

2Q26 Review - Top-Line Strength + Better Oplev Drives Estimates

Higher

CITI'S TAKE Buy

Price (14 Jul 26 16:00) US$60.62 BAC outperformed on the day (up ~1.88% vs BKX up ~1.05%) following a

Target price US$66.00 solid ~7c core PPNR beat vs. consensus, driven by stronger fee income

while keeping expenses well-managed, resulting in ~660bps of positive Expected share price return 8.9%

oplev in 2Q. Mgmt also raised the full-year oplev guidance to 300-400bps Expected dividend yield 2.0%

(from 200-300bps previously), signaling greater confidence in managing Expected total return 10.9%

expenses on top of better revenue growth. The 2Q print reaffirms our prior Market Cap US$425,429M

view that BAC's NIM remains among the more defensible in the group,

supported by fixed-rate asset repricing tailwinds and strong deposit

franchise, evidenced by a 1bp decline in total deposit costs. While NII

came in slightly below cons (~1c headwind), this was primarily a function Benjamin GerlingerAC

of a smaller earning asset base as the securities portfolio continued to +1-212-816-3538

run-off (down ~4% q/q), and balance sheet optimization keeps our NII benjamin.gerlinger@citi.com

estimates largely unchanged. Mikhail Mrotchek

+1-212-816-2345

Estimate Changes — Our 2026E EPS increases 5c to $4.65 (vs. FactSet consensus misha.mrotchek@citi.com

of $4.53), 2027E EPS increases 5c to $5.35 (vs. FactSet consensus of $5.14), and Kaili Wang, CFA

2028E EPS increases 5c to $5.95. See Figure 1 for more detail on estimate revisions. +1-716-730-7408

kaili.wang@citi.com

EPS (US$) Q1 Q2 Q3 Q4 FY FC Cons VA Cons