Bank of America (BAC) Q2 Earnings: EPS Surprise Can’t Mask Revenue Shortfall

Wall Street's favorite too-big-to-fail toddler stumbles again.

EPS beats, revenue whiffs: BAC's Q2 earnings per share cleared the low bar—but top-line growth got caught in the compliance department's paper shredder. Another quarter of 'strategic investments' (read: lawyers and regulators eating the balance sheet).

The crypto elephant in the room: While traditional banks play spreadsheet games, decentralized finance keeps gnawing at their ankles. BAC's 'mixed results' look even murkier when stablecoins process more transactions than their Zelle network.

Another quarter, another masterclass in how legacy finance turns profits into bureaucracy. At least the shareholders got their dividend—small consolation for a dinosaur watching the meteor approach.

TLDR

• Q2 adjusted EPS of $0.89 beat expectations of $0.86; net income rose to $7.12 billion
• Revenue of $26.61 billion missed consensus estimates of $26.72 billion
• Net interest income climbed 7% to a record $14.7 billion despite falling short of analyst expectations
• Sales and trading revenue hit a Q2 record at $5.4 billion, up 15%
• Investment banking fees dropped 9% to $1.4 billion, underperforming peers

Bank of America (NYSE: BAC) posted second-quarter adjusted earnings per share of $0.89, beating analyst expectations of $0.85. As of July 15, BAC stock closed at $39.78, gaining 0.9% on the day. Year-to-date, the stock has risen about 5%. Quarterly revenue was $26.61 billion, slightly below the $26.72 billion estimate. Net income ROSE 3% year over year to $7.12 billion.

Bank of America Corporation (BAC)

Net Interest Income Hits Record

Net interest income (NII) reached a second-quarter record of $14.7 billion, a 7% year-over-year increase. Growth was driven by deposit and loan expansion and fixed-rate asset repricing. Average loans and leases rose 7% to $1.13 trillion. CFO Alastair Borthwick reaffirmed that NII is expected to climb further, targeting $15.5–$15.7 billion in the fourth quarter.

$BAC | Bank of America is +1.1% this morning.

🔹 EPS: $0.89 vs. $0.86 est. ✅
🔹 Revenue: $26.46B vs. $26.70B est. 🔴

Key takeaways:
🔸 Consumer rev: +6% YoY
🔸 Global wealth rev: +7% YoY
🔸 Avg. deposits: $1.97T (+3% YoY)
🔸 Total loans: $1.15T (+9% YoY)
🔸 Dividend: +8% in Q3 pic.twitter.com/veWW1NwdQw

— CMG Venture Group (@CmgVenture) July 16, 2025

Strong Trading Performance Lifts Results

Sales and trading revenue jumped 15% year over year to $5.4 billion, marking the 13th straight quarter of annual growth. Equities trading hit a quarterly record, rising 10%, while fixed income, currencies, and commodities revenue grew 19%. The gains were driven by global uncertainty, rate changes, and supply chain shifts, prompting investors to adjust portfolios.

Weak Investment Banking Weighs on Outlook

Investment banking fees declined 9% to $1.4 billion, underperforming peers. JPMorgan, Citigroup, and Wells Fargo all posted growth in this segment. Management attributed the slowdown to policy shifts and elevated rates earlier in the quarter. Activity improved in May and June, and the bank sees stronger momentum heading into the second half.

Consumer and Commercial Strength Support Results

CEO Brian Moynihan highlighted resilient consumer spending and stable asset quality. He noted that this was the fourth consecutive quarter of NII growth, aided by rising deposits and increased commercial borrower utilization. Provision for credit losses rose slightly to $1.6 billion from $1.5 billion a year ago.

Bank of America reported Q2 results on July 16, 2025. Despite a slight revenue miss, strong trading income and record NII helped offset weakness in investment banking. The company expects continued loan growth and stronger deal activity in the coming quarters. Investors will be watching for follow-through on these trends in the second half of the year.