Bank of America (BAC) Reports Q2 Earnings: What Key Metrics Have to Say

Financial Performance - For the quarter ended June 2025, Bank of America reported revenue of $26.46 billion, an increase of 4.3% year-over-year [1] - Earnings per share (EPS) was $0.89, up from $0.83 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $26.59 billion, resulting in a surprise of -0.5% [1] - The company delivered an EPS surprise of +3.49%, with the consensus EPS estimate being $0.86 [1] Key Metrics - Efficiency Ratio (FTE basis) was 64.6%, slightly above the seven-analyst average estimate of 64.5% [4] - Net interest income/yield on earning assets was 1.9%, compared to the estimated 2% [4] - Net charge-off/Average Loans remained at 0.6%, matching the seven-analyst average estimate [4] - Book value per share of common stock was $37.13, exceeding the average estimate of $36.84 [4] - Total earning assets averaged $3050.21 billion, above the estimated $2975.44 billion [4] - Total nonperforming loans, leases, and foreclosed properties were $6.1 billion, below the average estimate of $6.66 billion [4] - Total Non-Performing Loans stood at $5.98 billion, also below the average estimate of $6.62 billion [4] - Tier 1 Capital Ratio was 12.8%, slightly below the average estimate of 13% [4] - Tier 1 Leverage Ratio was 6.7%, compared to the average estimate of 6.8% [4] - Total Noninterest Income was $11.79 billion, slightly below the average estimate of $11.81 billion [4] - Net Interest Income on a fully taxable-equivalent basis was $14.82 billion, below the estimated $14.86 billion [4] - Investment and brokerage services generated $4.78 billion, slightly above the average estimate of $4.76 billion [4] Stock Performance - Shares of Bank of America returned +4.3% over the past month, compared to the Zacks S&P 500 composite's +4.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]