Bank of America stock reacts after Q3 earnings

Core Insights - Bank of America reported stronger-than-expected Q3 2025 earnings, with net income rising to $8.5 billion from $6.9 billion a year earlier, and diluted earnings per share increasing by 31% to $1.06 [1][3] - The bank's stock surged 4.7%, nearing its 52-week high, and has seen a 23% increase over the year [1][3] Financial Performance - Revenue increased by 11% year-over-year to $28.1 billion, driven by higher net interest income, investment banking, asset management, and trading revenue [3] - Net interest income rose for the fifth consecutive quarter, up 9% to $15.2 billion, indicating resilience in the bank's lending business despite potential rate cuts by the Federal Reserve [3][4] - The efficiency ratio improved to below 62%, reflecting good operating leverage as revenues grew faster than expenses [2] Business Segments - The consumer business remained strong, with average deposits reaching nearly $1.99 trillion, a 4% increase from the previous year, and a reported 6% increase in card spending [4] - All lines of business reported improvements in both top and bottom lines, showcasing the strength of a diversified business model [2][4] Industry Context - Bank of America, along with other major banks, is exploring stablecoins pegged to G7 currencies, indicating a shift towards digital finance [5] - The earnings season has seen strong performances across major banks, benefiting from improved market sentiment and AI-driven economic expansion [7]