Bk Of America — Income Statement, Cash Flows & Balance Sheet
Is Bank of America profitable?
Bank of America posted its strongest earnings in at least three years, with net income rising sharply in 2025.
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Total revenue, net of interest expense | $102,769M | $105,856M | +3.0% |
| Total revenue, net of interest expense | $105,856M | $113,097M | +6.8% |
| Net income | $26,305M | $26,973M | +2.5% |
| Net income | $26,973M | $30,509M | +13.1% |
| Diluted EPS | $3.19 | $3.81 | +19.4% |
Revenue growth accelerated meaningfully in 2025, and profits jumped by more than thirteen percent — the kind of step-up that suggests the business is genuinely firing on more cylinders, not just cutting costs. Diluted EPS grew even faster than net income because Bank of America has been aggressively buying back its own shares, reducing the share count.
The rebound in net interest income was the single biggest driver of the profit improvement.
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Net interest income | $56,931M | $56,060M | -1.5% |
| Net interest income | $56,060M | $60,096M | +7.2% |
| Interest income | $146,607M | $138,566M | -5.5% |
| Interest expense | $90,547M | $78,470M | -13.3% |
Net interest income — the spread a bank earns between what it charges borrowers and pays depositors — had stalled in 2024 but recovered strongly in 2025. The key story is that interest expense fell sharply (as higher-rate deposits repriced lower) while interest income held up, widening the spread. This is the core engine of a retail and commercial bank, so its recovery matters a lot.
Expenses rose but were well controlled relative to revenue, and credit losses were stable.
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Total noninterest expense | $65,845M | $66,812M | +1.5% |
| Total noninterest expense | $66,812M | $69,727M | +4.4% |
| Provision for credit losses | $5,821M | $5,675M | -2.5% |
| Net charge-offs | $6,031M | $5,631M | -6.6% |
Operating costs grew about four percent, mostly wages and technology, but revenue grew faster — a good sign. Credit quality also improved slightly: the amount set aside for bad loans edged down, and actual loan losses (net charge-offs) fell, driven by improvement in commercial real estate and credit cards.
Where does Bank of America's revenue come from?
Consumer Banking remains the largest segment but Global Wealth & Investment Management is the standout grower.
| Segment | 2024 Revenue | 2025 Revenue | Change |
|---|---|---|---|
| Consumer Banking | $41,436M | $43,673M | +5.4% |
| Global Wealth & Investment Management | $22,929M | $24,883M | +8.5% |
| Global Banking | $23,748M | $24,108M | +1.5% |
| Global Markets | $21,812M | $24,096M | +10.5% |
Every segment grew in 2025, which is notable. GWIM — the wealth management and Merrill Lynch brokerage business — continues to benefit from rising asset prices boosting fee income; asset management fees alone jumped from about $13.9 billion to $15.6 billion. Global Markets had a strong year, with total sales and trading revenue climbing from $17.9 billion to $20.2 billion. Consumer Banking, while the biggest, grew the slowest as credit card losses weighed on its provision line.
Does Bank of America generate cash?
Bank of America returned to positive operating cash flow in 2025 after an unusual outflow year.
| Metric | 2023 | 2024 | Change |
|---|---|---|---|
| Net cash from operating activities | $44,982M | ($8,805M) | — |
| Net cash from operating activities | ($8,805M) | $12,613M | — |
| Cash dividends paid | $9,503M | $9,563M | +0.6% |
| Common stock repurchased | $13,104M | $21,433M | +63.6% |
The 2024 operating cash outflow was driven by swings in trading assets and liabilities — normal volatility for a large capital markets firm — and 2025 normalised back to healthy generation. The most striking number is the buyback: Bank of America repurchased over $21 billion of its own stock in 2025, up sharply from $13 billion the prior year, signalling management's confidence and directly boosting earnings per share.
How strong is Bank of America's balance sheet?
Bank of America is well capitalised by regulatory standards, with capital ratios comfortably above minimums.
| Capital Metric | Required Minimum | 2024 Actual | 2025 Actual |
|---|---|---|---|
| Common Equity Tier 1 (Standardized) | 10.0% | 11.9% | 11.4% |
| Tier 1 Capital Ratio (Standardized) | 11.5% | 13.2% | 12.8% |
| Supplementary Leverage Ratio | 5.0% | 5.9% | 5.7% |
Capital ratios dipped modestly — reflecting the aggressive share buyback programme returning capital to shareholders — but remain well above what regulators require. The bank is formally classified as "well capitalised," which matters because it preserves the ability to pay dividends and repurchase stock without regulatory restriction.
A large held-to-maturity bond portfolio carries significant unrealised losses, a well-known overhang worth understanding.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| HTM debt securities (amortised cost) | $558,677M | $522,660M | -6.4% |
| HTM fair value | $450,548M | $442,430M | -1.8% |
| Unrealised loss on HTM portfolio | ($108,129M) | ($80,230M) | Improved $27.9B |
The held-to-maturity (HTM) portfolio consists mainly of bonds bought when rates were low that are now worth less at current rates. These losses are not recorded through earnings under accounting rules as long as the bank holds the bonds to maturity — but they reduce the economic value of the balance sheet. The good news is the unrealised loss shrank by about $28 billion in 2025 as some bonds matured and rates moved. This is a long-running issue that will gradually resolve itself over time.