Bank of America Corporation

Solid core banking momentum; diversified drivers (good): - Net income $6.9B (EPS $0.91) included a $1.2B regulatory settlement charge (non-tax deductible; ~$0.17/share). - Adjusted net income: $8.1B (~$1.08/share), up year-over-year. - Revenue roughly $30B (+~3% YoY); NII up 8% YoY to $16.6B (FTE); asset management fees +17%. - Management emphasized continued strength in “Main Street” activity: money movement +5% YTD and ongoing healthy client usage (payments, digital activity, loan demand, wealth flows).

Loans/deposits strong; credit quality improving (good): - Loans: $1.25T (+$34B QoQ); 10 consecutive quarters of loan growth. - Deposits: $2.0T, ending deposits +$14B QoQ and above $2T. Despite intentional runoff of $11B higher-cost deposits, deposit mix remained attractive (non-interest-bearing >75% of YoY deposit growth; deposit rate up only ~3 bps to 1.49%). - Credit: Provision ~$1.3B and net charge-off ratio improved to 44 bps; card loss rate 3.22% (improved vs Q2; delinquencies down YoY for six straight quarters). Commercial criticized assets fell to lowest rate since 4Q 2019; NPLs down QoQ.

NII outlook raised/strengthened; operating leverage expected (good with specific forecasts): - Q4: expect sequential NII improvement. - 2026 full-year NII growth: guidance ~8% (management said they raised guidance during 2026 from 7% to ~8%); prior medium-term framework was 5–7%, now effectively upgraded. - 2027: expects 8% NII growth or more (management reiterated 2027 should be strong vs 2026). - Key drivers: deposit growth (especially non-interest-bearing), loan growth (avg ~$20B/quarter), and fixed-rate asset repricing. - Acknowledged nuance: markets drag—markets assets/related income have been flatter, so the all-in NII figure still reflects that offset.