Bank of America’s third quarter performance received a positive response from the market, reflecting broad-based revenue momentum and efficiency gains. Management credited this outperformance to continued organic growth in core deposit and lending activities, with notable contributions from the consumer banking and global wealth segments. CEO Brian Moynihan emphasized that “all business segments contributed to earnings improvement,” citing disciplined expense management, strong digital adoption, and elevated customer experience scores as key factors supporting recent results. The company also highlighted robust asset quality and growth in investment banking and trading activities.
Is now the time to buy BAC? Find out in our full research report (it’s free for active Edge members).
Bank of America (BAC) Q3 CY2025 Highlights:
- Revenue: $28.09 billion vs analyst estimates of $27.58 billion (10.8% year-on-year growth, 1.8% beat)
- Adjusted EPS: $1.06 vs analyst estimates of $0.95 (11.4% beat)
- Adjusted Operating Income: $9.60 billion vs analyst estimates of $10.26 billion (34.2% margin, 6.4% miss)
- Market Capitalization: $377.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bank of America’s Q3 Earnings Call
- Glenn Schorr (Evercore): Asked how artificial intelligence will impact future efficiency and margins. CEO Brian Moynihan explained that AI and automation are already reducing manual tasks, but emphasized the need for careful model implementation due to regulatory requirements.
- John McDonald (Truist Securities): Inquired about the sustainability of capital markets strength and deposit pricing. CFO Alastair Borthwick noted strong investment banking pipelines and disciplined deposit pricing, but cautioned that normal seasonality could impact fourth quarter trends.
- Jim Mitchell (Seaport Global): Asked about further opportunities to reduce wholesale funding and implications for net interest yield. Borthwick indicated some room remains for balance sheet optimization, though the impact will moderate over time.
- Erika Najarian (UBS): Queried on return on tangible common equity (ROTCE) targets relative to peers. Moynihan stated that ROTCE should continue to rise as organic growth and asset repricing compound, with more details to be provided at Investor Day.
- Mike Mayo (Wells Fargo Securities): Requested more detail on AI-driven cost savings and efficiency targets. Moynihan highlighted that AI has already reduced coding costs and enabled staff redeployment, but said broader impacts will be discussed in November.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and scale of AI technology adoption and its effect on cost structure, (2) sustainability of loan and deposit growth across consumer and commercial segments, and (3) asset quality trends, particularly in commercial real estate and consumer credit. Execution on digital engagement initiatives and further evidence of operating leverage will also be important markers.
Bank of America currently trades at $51.53, up from $50.05 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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