Bank of America Corp. (BAC): 2Q26 EPS: A solid quarter paves the way for higher operating leverage and returns

研报英文原文证据摘录

Bank of America Corp. (BAC): 2Q26 EPS: A solid quarter paves the way for higher operating leverage and returns

Goldman Sachs Bank of America Corp. (BAC)

Fee income came in 8% than Street estimates, driven primarily by higher IB and

trading. The bank highlighted broad based strength and high levels of client

engagement in Investment Banking, noting solid pipelines, with 2Q26 IB fees ex self-led

deals up 47% YoY. On trading, management expect it to remain strong in the near term.

We note that our estimates incorporate an 20% decline in 3Q26 equities revenues QoQ

(in-line with historical seasonality) which may prove conservative if current market

conditions prevail.

Credit was another bright spot as the company released ~$46mn of reserves (vs.

consensus expectation of a $28mn build), as the economic backdrop has remained

constructive and consumer spending continues to outperform expectations. BAC’s CET1

capital ratio was unchanged sequentially at 11.2%, despite $8bn of capital returns in the

quarter, and the company continues to have significant excess capital vs. an estimated

target of 10.5%2, which puts them in a good position to continue to fund balance sheet

growth from here.

Following the results and the management commentary, we increase 2026E/27E

EPS by 4%/1%, resulting in a 16.3% 2026E ROTCE, increasing to 18.3% in 2028. We

increase our 2027E P/E target multiple by 0.5x to 14.5x, resulting in our price target

increasing 4% to $74 (was $71).

Further detail within.

n Strong NII guidance: FTE NII of $16.2bn came in largely in-line with consensus, with

management reiterating the 2026 NII growth guidance at the high end of the 6-8%

YoY range, driven by: 1) modest expected loan and deposit growth in H2; 2) fixed