Bank Of America Corp.

Strong overall Q2 performance; operating leverage & ROE improved - Revenue +15% YoY to $31.6B; net income $9.1B (+27% YoY); EPS $1.21 (+34% YoY). - Operating leverage 6.6% and efficiency ratio improved to 59%; return on tangible common equity (RTCE) 17%. - Management emphasized *broad-based growth*—every business segment contributed to YoY revenue/net income growth with operating leverage and efficiency improvement.

NII (net interest income) remains a key driver; guidance raised to upper end - Q2 FTE NII ~$16.2B (+9% YoY); net interest yield 2.08% (up 1 bp QoQ and 14 bps YoY). - Management explained NII strength as coming from loan/deposit growth, fixed-rate repricing, and higher Global Markets-related activity, partially offset by lower short-term rates. - Full-year 2026 NII outlook raised: prior 6–8% range was reiterated as now expected at the upper end, supported by continued loan/deposit growth, repricing, and balance sheet optimization (assumes modest 2H growth and one 25bp rate hike in September per the forward curve).

Deposit franchise: continued growth, but mix/pricing optimized - Average deposits $2.02T (+2.5% YoY) with 12th consecutive quarter of average deposit growth. - Non-interest-bearing deposits +4% YoY (up $19B)—a central factor in deposit strategy. - Rate paid was modestly lower (noted -48 bps for consumer deposits), attributed mainly to balance and mix dynamics, while management emphasized they “compete tooth and nail” for deposits but prioritize relationship value (checking accounts, operating accounts, digital/security/rewards).