Bank of America Corporation (BAC)

Bank of America reported third-quarter 2026 net income of $6.9 billion, down from $8.3 billion a year earlier, on revenue up 3 percent to $30.0 billion 1. Net interest income, what loans and securities earn minus what deposits and borrowings cost, rose 8 percent to $16.4 billion 1. The fall in profit came from one charge: $1.2 billion set aside for regulators' penalties, without which net income would have been $8.1 billion 1.

On 13 October the Treasury fined the bank $1.2 billion for failing to report risks tied to Chinese money laundering networks and illicit finance along the southwest border 3. The penalty includes $750 million for the Office of the Comptroller of the Currency, the national bank regulator, the largest fine that agency has ever imposed 3. Treasury said Bank of America admits it willfully violated the Bank Secrecy Act, the 1970 law that makes banks help the government detect money laundering 3.

Reuters reported that the failures left more than $5 billion of suspicious activity unreported, and that a consent order requires the bank to work with a third party to find what was missed 4. Finance chief Alastair Borthwick told analysts the order carries no asset cap, a limit on the bank's size, and does not constrain normal business, MarketBeat reported 5. Moynihan said the continuing cost of the repair work is already in the bank's expense base 5.

The company in its present form dates to 30 September 1998, when NationsBank Corporation merged with the former BankAmerica Corporation and took the BankAmerica name 18. Earlier that year, on 9 January 1998, it had completed its merger with Barnett Banks 18.

In the next decade it grew by buying, starting with its merger with FleetBoston Financial, completed on 1 April 2004 19. The credit card company MBNA joined on 1 January 2006, and U.S. Trust, which manages wealth for very rich families, followed on 1 July 2007 for $3.3 billion in cash 20. On 1 October 2007 it paid $21.0 billion in cash for LaSalle Bank's parent, expanding in metropolitan Chicago, Illinois and Michigan 20.

Two purchases in the financial crisis reshaped it: Countrywide, the mortgage lender, on 1 July 2008 for stock worth $4.2 billion, and Merrill Lynch on 1 January 2009 for stock worth $29.1 billion 20. Countrywide made it a leading mortgage lender and servicer, and Merrill added about 16,000 financial advisers 20. Net income fell to $4.0 billion in 2008 from $15.0 billion in 2007 20.

To steady it, the U.S. Treasury put $45.0 billion into its preferred stock under the Troubled Asset Relief Program, the rescue fund the Treasury created in October 2008 21. The bank repaid it on 9 December 2009, with $25.7 billion of its own spare cash and $19.3 billion raised by selling new securities 21. Net income was $6.3 billion in 2009, but after the cost of the repayment and preferred dividends common shareholders had a net loss of $2.2 billion 21.

Brian Moynihan took the top job in 2010 and began by selling what did not fit, 23 businesses in his first six quarters, Banking Dive reported 9. The mortgage years kept costing money: on 20 August 2014 the bank settled with the Justice Department, paying $9.65 billion in penalties and remediation and promising $7.0 billion of consumer relief 22. Net income fell to $4.8 billion in 2014 from $11.4 billion in 2013, after a $10.3 billion rise in litigation expense 22.

The pandemic tested the rebuilt bank: net income fell to $17.9 billion in 2020 from $27.4 billion in 2019, mostly because it set aside more for loans that might go bad 23. Net interest income dropped $5.5 billion to $43.4 billion as interest rates fell 23. Deposits, meanwhile, rose $360.7 billion during 2020, from both households and companies 23.

Higher interest rates then turned those deposits into income: net interest income rose $4.5 billion to $56.9 billion in 2023, though net income slipped to $26.5 billion from $27.5 billion on higher costs 24. In 2025 net income reached $30.5 billion on revenue of $113.1 billion, as both interest income and fees grew 2.

Consumer Banking

Consumer Banking takes deposits and lends to people and small businesses through about 3,600 financial centers in 38 states and the District of Columbia, about 15,000 cash machines and its apps 2. In 2025 it earned $12.2 billion, the most of the four business segments, on net interest income of $35.3 billion 2.

In the third quarter of 2026 it held $949 billion of average deposits and ranked first in U.S. consumer deposits, by the bank's reading of regulators' call reports 1. Its credit and debit cards carried $266 billion of spending, up 8 percent, and average card loans were $106 billion, up 5 percent 1. Erica, the bank's virtual assistant in its app, had 24.2 million active users, up 18 percent, and its Zelle users sent and received 500 million payments 1.

Wealth management: Merrill and the Private Bank

Global Wealth and Investment Management runs Merrill, whose advisers serve clients with more than $250,000 to invest, and the Bank of America Private Bank for the very wealthy 2. In 2025 Merrill brought in $20.7 billion of revenue and the Private Bank $4.2 billion, and the segment earned $4.7 billion 2. Its fees follow markets: asset management fees rose 12 percent to $15.4 billion as markets rose and clients added money 2.

In the third quarter of 2026 its client balances reached $5.1 trillion, up 9 percent, and its revenue rose 13 percent to $7.1 billion 1.

Global Banking: loans and cash management for companies

Global Banking lends to companies, runs their payments and cash, and underwrites and advises on their deals 2. In 2025 it earned $7.8 billion, as noninterest income rose to $11.5 billion while lower interest rates cut its net interest income to $12.6 billion 2.

In the third quarter of 2026 investment banking fees across the company fell 11 percent to $1.8 billion 1. Reuters reported that the bank slipped to fourth place in the global investment banking league table for the first nine months of 2026, from third a year earlier 4.

Global Markets: trading for investors

Global Markets buys and sells bonds, currencies, commodities and shares for institutional investors, and finances, clears and holds their trades 2. Its revenue rose $2.3 billion to $24.1 billion in 2025, and it earned $6.1 billion 2. In the third quarter of 2026 sales and trading revenue fell 5 percent to $5.1 billion, as bond, currency and commodity trading fell 17 percent while stock trading rose 11 percent 1.

Where the revenue comes from

The United States brought in 86 percent of revenue in 2025 (computed), and the rest came from Europe, the Middle East and Africa, from Asia, and from Latin America and the Caribbean 2.

The people

The bank employed about 213,000 people at the end of 2025, 77 percent of them in the United States, and none of its U.S. employees is covered by a union contract 2. Pay and benefits cost $42.3 billion in 2025, 61 percent of all noninterest expense 2.

Brian Moynihan has been chief executive since January 2010 and chair since October 2014 23. Since 12 September 2025 two co-presidents, Dean Athanasia and Jim DeMare, have overseen the business lines, and finance chief Alastair Borthwick is also executive vice president 8. On 21 October 2026 the board added two directors, Jim Fitterling, executive chairman of Dow, and Bill Thomas, former global chief executive of KPMG 11.

Offices and property

The bank owns or leases about 62.9 million square feet in over 19,600 facilities and cash machine sites, about 56.9 million of them in the United States 2. It owns its 60-story headquarters in Charlotte and leases its New York tower at One Bryant Park, in which it has a 49.9 percent joint venture interest 2.

Rivals

The annual report names a wide field of competitors, from banks, thrifts and credit card issuers to investment firms, hedge funds and internet companies, including firms built on digital assets 2. The Associated Press describes it as the country's second-biggest bank 3.

Problems: regulators and courts

The October penalties settle violations cited in a 2024 consent order from the Comptroller of the Currency, which required the bank to fix how it polices money laundering 34. The bank said it has invested billions of dollars in technology and dedicated thousands of employees to fighting financial crime 3.

On 5 October 2026 the Supreme Court asked the government for its views in the Cantero case against Bank of America's national bank, before deciding whether to hear it 16. The case asks whether the National Bank Act, the federal law for national banks, overrides state laws requiring interest on mortgage escrow accounts 17.

The umbrella, in words

Bank of America Corporation is a holding company: its main bank, Bank of America, National Association, is wholly owned through two holding companies, BAC North America Holding Company and NB Holdings Corporation 17. Its brands are Bank of America for everyday banking, Merrill and the Bank of America Private Bank for wealth, and BofA Securities for investment banking and trading 2.

The subsidiaries list in the 2025 annual report names, among others, Merrill Lynch, Pierce, Fenner & Smith in New York, BofA Securities, Merrill Lynch International in London and Bank of America Europe in Dublin 15. It leaves out smaller subsidiaries, as the SEC's rules allow 15.

The bank reports stakes of its own: a Schedule 13D/A from October 2026 shows it holding 100 percent of the Adjustable Rate MuniFund Term Preferred Shares of the Nuveen Minnesota Quality Municipal Income Fund 27.

No single holder controls the company, and its own court filing says no publicly held corporation owns more than 10 percent of its shares 17. Berkshire Hathaway reported 7.8 percent of the common stock in a Schedule 13G/A signed on 14 November 2025 13. Vanguard Capital Management reported 6.59 percent in a Schedule 13G signed on 29 April 2026 14.

At the annual meeting on 4 May 2026, shareholders elected every director and rejected a proposal for an independent board chair, 1.72 billion votes for and 3.56 billion against 12.

Borthwick said the bank remains on track for about 8 percent growth in net interest income in 2026 and now expects 8 percent or more in 2027, MarketBeat reported 5. That 2027 outlook assumes three quarter-point rises in interest rates through June 2027, though Borthwick said it does not rest on rates alone 5. The company also expects to return to positive operating leverage, revenue growing faster than costs, in the fourth quarter 5.

At its first investor day in 15 years, in November 2025, the bank set a goal of a 16 to 18 percent return on tangible common equity within three to five years 6. That measure, profit as a share of shareholders' money without goodwill and other intangibles, was 14.2 percent for 2025 6.

The bank buys back stock under a $40 billion authorization in effect since 1 August 2025, and in July 2026 the board raised the quarterly dividend 14 percent to $0.32 a share 7. In the third quarter it returned $8.3 billion, $2.2 billion in dividends and $6.0 billion in buybacks 1.

The consent orders require the bank to work with a third party to find and report suspicious transactions that went undetected, Reuters reported 4. Moynihan said the settlement resolved the penalty tied to the 2024 order and that management has clarity on the remaining remediation requirements 5.

Bank of America is one of 21 financial institutions backing a company to be set up by the end of 2026 to issue a stablecoin, a digital token kept equal to the dollar 10. The token is to go to market in the first half of 2027, according to Banking Dive 10.

Moynihan said in September 2025 that he plans to stay with the bank through the end of the decade, Banking Dive reported 9.

Past

Bank of America's revenue grew from $84 billion in fiscal 2016 to $113 billion in fiscal 2025, rising 3.4% a year, and rose in 8 of 9 years over that span Net income was positive in all 10 filed years The deepest fall was 6% from fiscal 2019 to fiscal 2020 Over the three fiscal years to 2025, the diluted share count shrank about 2.0% a year, and dividends and buybacks returned about 80% of operating cash flow The bank's filings since 2017 show no warning events: no bankruptcy or receivership notice, no debt default notice, no exchange listing notice, no restatement warning, no auditor change, no material cyber incident and no late-report notice 1

Present

For the fiscal year ended 2025-12-31, Bank of America reported revenue of $113 billion and a profit of $31 billion Return on equity was 10 cents of profit for every dollar of shareholders' money; leverage stood at 91 cents owed per dollar of assets; and the share count shrank 3.2% over the year The bank's revenue of $113 billion ranks in the top 2% by size among its industry family; its net margin of 27% ranks in the top 23%; revenue growth of 6% a year over the last three filed years ranks in the bottom 11% Chief executive Brian T. Moynihan has held that title since 2010, placing him in the top 11% of his industry family for tenure; the 27 officers and directors have been on the record a median of 8.9 years, in the top 26%; 6 officer or director changes were reported since 2023, against the 27 people in charge now 21

Future

A quarterly report for the quarter ending 2026-09-30 is due by 2026-11-09 An annual report for the fiscal year ending 2026-12-31 is due by 2027-03-01 Cash of $232 billion against debt of $318 billion leaves negative 2.5% of assets as net cash, in the bottom 10% of its industry family Revenue grew 6% a year over the last three filed years against 3.4% over all 10, speeding up, though ranked in the bottom 40% of its family 31

How the company operates

Bank of America is a lending business By geography in fiscal 2025, the United States accounts for 86% of revenue, EMEA for 7%, Asia for 5%, and Latin America for 2% The bank tags no split of its revenue by line of business in the annual report on file 21

New moves

On 2026-10-21, Bank of America filed offering prospectuses for notes or structured products, financial instruments often sold by banks On 2026-10-06, the Supreme Court asked the Solicitor General for the government's views in a case over state laws that make mortgage lenders pay interest on escrow balances, naming Bank of America among the banks involved On 2026-10-14, Bank of America was fined $1.2 billion for money-laundering violations and violations of sanctions laws On 2026-10-14, the bank hired 1,000 contractors to patch software flaws exposed by Anthropic's Mythos 345