Bank of America Corporation

Strong underlying banking momentum; earnings solid despite regulatory hit - Reported Q3 net income: $6.9B and EPS: $0.91; these were impacted by a non-tax-deductible regulatory settlement charge of $1.2B (~$0.17/share). - Excluding the settlement: net income $8.1B (~$1.08/share), up vs. last year (management framed as “solid earnings” driven by core business strength and improved credit). - Revenue: ~$30B, up ~3% YoY; earnings drivers: higher NII (+8% YoY) and asset management fees (+17%), while investment banking & sales/trading were weaker.

NII (key forecast item) improved and outlook remains constructive (despite markets volatility) - NII: $16.6B (FTE), +8% YoY; +$450M vs Q2. Net interest yield: 2.16%, +15 bps YoY and +8 bps sequentially—moving closer to a ~2.3% medium-term target. - Management expects NII to improve sequentially in Q4 and through 2027. - Guidance: full-year 2026 NII growth ~8% (management raised prior guidance over time to this level); 2027 expects full-year NII growth 8% or more. - Assumptions mentioned: three 25 bps rate increases through June 2027; also relies on continued modest loan/deposit growth and fixed-rate asset repricing (auto/residential mortgage and related instruments).

Credit quality stable-to-improving; provisioning moderate - Provision expense ~ $1.3B, lower than Q2; net charge-off ratio improved to 44 bps. - Consumer: card loss rate 3.22%, improved vs Q2; delinquencies down, with trends described as improving for six consecutive quarters YoY. - Commercial: criticized assets declined to the lowest on a rate basis since 4Q 2019; non-performing loans fell vs Q2. - Management emphasized no signs of consumer credit stress, supported by continued spending/activity and customer deposits.