Bank of America: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 14, 2026, Bank of America (BAC -0.91%) announced adjusted net income of $8.1 billion. A $1.2 billion regulatory settlement charge reduced reported net income to $6.9 billion. Rising loan yields continue driving core earnings higher. Three things management said stand out.

1. Net Interest Income Growth Will Exceed 8% in 2027

Net interest income, or NII — the difference between what a bank earns on loans and pays on deposits — is accelerating as fixed-rate assets reprice into higher yields. Management raised its guidance above original targets.

For 2027, we currently expect full-year growth of NII to be 8% or more, higher than 2026, and again, higher than our original 5%-7% range.
— Alastair Borthwick, Executive Vice President and Chief Financial Officer

2. Regulatory Settlement Costs Are Already Baked Into Expenses

A $1.2 billion non-tax-deductible regulatory settlement charge for failure to adhere to anti-money laundering compliance lowered reported earnings. Management already built the ongoing technology and staffing costs directly into its standard operating expense base.

Third, we have committed the resources, and the ongoing cost remediation is embedded in our company’s expense base.
— Brian Moynihan, Chair and Chief Executive Officer

3. Low Loan-to-Deposit Ratios Protect Margins From Price Wars

Total deposits reached $2 trillion, funding $1.25 trillion in loans. Because the bank holds substantial excess liquidity, it doesn’t need to offer high interest rates to retain customer deposits.

Our focus on operating deposits and our low loan-to-deposit ratio allow us to compete on capabilities rather than price.
— Alastair Borthwick, Executive Vice President and Chief Financial Officer

Looking Ahead

Commercial borrowing and account growth show no signs of slowing down. Management expects operating leverage — growing revenue faster than operating expenses — to resume in the fourth quarter. Fixed-rate loans continue repricing into higher yields, while artificial intelligence tools trim routine technology costs.

What our clients are actually doing is continuing to point to a resilient and growing economy in the U.S.
— Brian Moynihan, Chair and Chief Executive Officer

Core organic growth in consumer checking accounts and commercial relationships provides a durable moat against market volatility. Broad business diversity insulates total earnings when investment banking and trading activity cool down.

Our balance sheet and capital remain strong, and we continue to invest in technology and develop AI capabilities to support long-term growth. This quarter demonstrates the strength of our franchise and the value of our diversified business model.
— Brian Moynihan, Chair and Chief Executive Officer