Bank of America Posts Record Q2 Results

Core Insights - Bank of America Corporation reported Q2 2025 earnings with $26.6 billion in revenue, a 4% year-over-year increase, and net income of $7.1 billion, resulting in an EPS of $0.89, up 7% year-over-year [1] - The company achieved record net interest income (NII) of $14.8 billion, reflecting a 7% increase from Q2 2024, supported by disciplined deposit pricing [1][4] Financial Performance - The quarter included $5.3 billion in share repurchases and $2 billion in dividends paid, with guidance for record NII in the second half of 2025 remaining unchanged [2] - Average deposits exceeded $2 trillion, growing for eight consecutive quarters, outpacing industry growth rates of 39% and large bank growth rates of 32% since the pre-pandemic period [3] Efficiency and Technology - Nearly 80% of consumer households are fully digitally engaged, with significant digital channel activity, including 4 billion logins and 65% of consumer product sales executed digitally [5] - The AI platform "Erica" handles 58 million interactions monthly, contributing to a 10%-15% reduction in code generation costs for 17,000 developers [5] Capital Management - Shareholder distributions reached $7.3 billion, a 40% year-over-year increase for the first half of 2025, with tangible book value per share rising 9% to $27.71 [7] - Management plans an 8% common dividend increase starting in September 2025, pending board approval, while targeting a 50 basis point buffer above the minimum CET1 ratio [7][9] Future Outlook - Management reaffirmed expectations for Q4 2025 NII of $15.5 billion to $15.7 billion, projecting full-year NII growth of 6%-7% for 2025 [10] - Expenses are expected to stabilize or trend modestly lower in the second half of 2025, driving operating leverage and lower efficiency ratios [11]