Bank of America Corporation

Strong underlying operating performance; regulated settlement is the main drag - Reported net income: $6.9B (EPS $0.91). - Included $1.2B non-tax-deductible regulatory settlement charge (~$0.17/share). - “Ex-settlement” net income: $8.1B (~$1.08/share), up vs. last year. - Good sign: management attributes earnings strength to Main Street activity (consumer + wealth + commercial) even as markets/investment banking were softer.

Revenue/NII momentum: NII rising; 2026 and 2027 NII growth guidance reaffirmed - Revenue ~$30B (+3% YoY). - NII: $16.6B (FTE) (+8% YoY, +$450M QoQ); net interest yield 2.16%, +15 bps YoY and +8 bps QoQ, moving toward 2.3% medium-term target. - Management outlook: expects NII to improve sequentially in Q4 and through 2027, assuming modest loan and deposit growth plus fixed-rate asset repricing. - Forward-rate assumption: includes three 25 bp rate increases through June 2027 (Dec 2026, Mar 2027, Jun 2027). - Guidance raised/updated: expects ~8% full-year NII growth in 2026 and 8%+ in 2027 (explicitly says no change to Investor Day’s operating leverage expectation of 200–300 bps; could be higher later based on visibility).

Balance sheet growth supported by deposits and loan growth; credit quality stable/improving - Assets: $3.4T (down 2% QoQ), while loans: $1.25T (+$34B QoQ), now 10 straight quarters of loan growth. - Deposits: $2.0T; +$14B from Q2 (and +$31B YoY vs Q3’25), with management emphasizing operating deposits and deposit franchise. - Non-interest-bearing deposits: grew; deposit mix remains strong (>75% of YoY deposit growth from NIB). - Credit: provision ~$1.3B, net charge-off ratio 44 bps (improved); card loss rate 3.22% (improved; delinquencies down YoY for 6 straight quarters); commercial criticized assets declined to lowest on a rate basis since 4Q 2019.