Bank of America delivered an impressive financial performance in the second quarter of 2026, marking significant growth across all its business units. The company's strategic focus on organic expansion, operational efficiency, and technological innovation, particularly in artificial intelligence, has yielded substantial returns. This period's success was characterized by broad-based revenue increases, enhanced net income, and a strong return to shareholders, underscoring the bank's resilient business model and its ability to thrive in a dynamic economic environment. The leadership team emphasized the positive impact of a strong U.S. economy, coupled with their proactive adoption of AI-driven solutions, in achieving these favorable outcomes.
The second quarter results were announced on Tuesday, July 14, 2026, during an 8:30 a.m. ET earnings call. Key participants included Lee McEntire from Investor Relations, Brian Moynihan, the Chairman and CEO, and Alastair Borthwick, the Executive Vice President and Chief Financial Officer. The discussions centered on the factors contributing to the bank's strong performance, highlighting revenue, net income, and earnings per share. Management provided insights into the strategic initiatives that are bolstering the bank's growth trajectory and its outlook for the remainder of the year.
During the call, detailed financial metrics were presented, demonstrating a 15% year-over-year increase in revenue, reaching $31.6 billion. Net income climbed by 27% to $9.1 billion, and diluted earnings per share saw a 34% rise to $1.21. Net interest income (NII) on a fully taxable-equivalent (FTE) basis grew by 9% to $16.2 billion, driven by higher loan and deposit balances, asset repricing, and Global Markets activities. Non-interest income surged by 22% to $15.6 billion, propelled by record performances in fee-based businesses, including a 50% increase in investment banking fees and a 33% rise in sales and trading revenue. Equities revenue alone jumped 70% to $3.6 billion, while Fixed Income, Currency, and Commodities (FICC) revenue increased by 9% to $3.5 billion, marking its strongest quarter in over a decade. The bank also achieved a 59% efficiency ratio, a 359 basis point improvement, reflecting robust revenue growth and disciplined expense management.
In terms of balance sheet strength, average deposits grew 2.5% year-over-year to $2.02 trillion, marking the twelfth consecutive quarter of sequential growth. Average loans and leases increased by 8% to $1.22 trillion, primarily due to an 11% rise in commercial lending. Capital returns to shareholders were substantial, totaling $8.0 billion through dividends and share repurchases. The Common Equity Tier 1 (CET1) capital stood at $201.6 billion, with a CET1 ratio of 11.2%, comfortably above regulatory requirements. Furthermore, Bank of America reported significant progress in AI implementation, with 300 approved AI use cases, including 114 live generative AI cases supporting over 400,000 prompts daily, enhancing productivity and client service.
The U.S. economy's resilience was cited as a constructive backdrop for the bank's performance, with research analysts revising the 2026 U.S. GDP growth forecast to 2.2%. Consumer spending showed robust growth, exceeding expectations. However, management acknowledged ongoing risks such as inflation and tighter monetary policy. The bank's credit quality remained stable, supported by strong underwriting discipline and healthy client fundamentals. Consumer card charge-offs and delinquencies improved, and commercial credit remained solid. The provision for credit losses was stable at $1.4 billion, and non-performing loans remained consistent at $5.8 billion.
Each business segment contributed to the overall success. Consumer Banking saw a 10% increase in net income to $3.3 billion, with revenue up 5% to $11.3 billion, driven by strong client engagement and digital adoption. Global Wealth and Investment Management (GWIM) achieved a 42% increase in net income to $1.4 billion and a record revenue of $6.9 billion, supported by asset management fees and strong client flows. Global Banking's net income grew 20% to over $2 billion, with revenue up 10% to $6.2 billion, boosted by investment banking and treasury services. Global Markets delivered an exceptional quarter with net income (excluding DVA) rising 70% to $2.7 billion, and sales and trading revenue (excluding DVA) increasing 33% to $7.2 billion, marking consistent year-over-year growth for multiple consecutive quarters.
The management team expressed confidence in the company's ability to maintain strong performance, expecting full-year 2026 net interest income growth to be at the upper end of its 6% to 8% range. This optimistic outlook is based on anticipated loan and deposit growth, fixed-rate asset repricing, and continuous balance sheet optimization. The discussions also touched upon the sustainability of operating leverage, with the bank outperforming its initial targets due to strong revenue generation and effective cost management. The ongoing integration of AI tools across various functions is expected to further enhance efficiency, risk management, and overall client engagement, positioning Bank of America for continued long-term growth and attractive returns for shareholders.
The consistent strong performance observed across all financial metrics highlights Bank of America's strategic effectiveness. The diversified revenue streams, encompassing net interest income, investment banking, and sales and trading, have all contributed significantly to the bank's robust growth. Furthermore, the disciplined approach to expense management, coupled with substantial investments in advanced technologies like AI, has not only boosted efficiency but also improved client service and overall productivity. This successful alignment of operational excellence, technological innovation, and strategic capital management positions the company for sustained profitability and continued value creation for its shareholders.