Bk Of America — Financial Results
Net Income Rose 13% in 2025, Driven by Higher Revenue Across the Board
| Metric | 2025 | 2024 |
|---|---|---|
| Total revenue | $113.1B | $105.9B |
| Net income | $30.5B | $27.0B |
| Diluted EPS | $3.81 | $3.19 |
| Return on tangible common equity | 14.22% | 12.94% |
Bank of America had a strong 2025. Revenue grew $7.2 billion and net income jumped nearly $3.5 billion, with improvements coming from every major income line. Return on tangible common equity (a key measure of how efficiently the bank uses shareholders' money) rose from 12.94% to 14.22%, a meaningful step toward industry-leading profitability.
Net Interest Income Recovery Is the Biggest Driver of Earnings Growth
| Metric | 2025 | 2024 |
|---|---|---|
| Net interest income (NII) | $60.1B | $56.1B |
| Net interest yield (FTE basis) | 2.01% | 1.95% |
Net interest income — what the bank earns on loans and investments minus what it pays on deposits — grew $4 billion, or about 7%. The increase came from fixed-rate assets repricing higher as older, lower-rate instruments matured, plus loan and deposit growth. This is significant because NII had been under pressure in 2024 as deposit costs rose faster than asset yields; 2025 marks a clear turn in that trend.
Wealth Management Had a Standout Year as Client Assets Hit $4.8 Trillion
| Metric | 2025 | 2024 |
|---|---|---|
| GWIM revenue | $24.9B | $22.9B |
| GWIM net income | $4.7B | $4.3B |
| Total client balances | $4.75T | $4.25T |
| Assets under management | $2.18T | $1.88T |
| Net client AUM flows | $82.0B | $79.2B |
The Global Wealth & Investment Management (GWIM) division, which houses Merrill and Bank of America Private Bank, grew revenue 9% and net income 10%. Client balances grew $499 billion, reflecting both rising markets and strong net inflows. Importantly, clients actively added money — $82 billion in net new flows — rather than growth coming purely from market appreciation.
Credit Quality Improved, With Loan Losses Declining
| Metric | 2025 | 2024 |
|---|---|---|
| Net charge-offs | $5.6B | $6.0B |
| Net charge-off ratio | 0.50% | 0.57% |
| Provision for credit losses | $5.7B | $5.8B |
| Commercial real estate charge-offs | $491M | $864M |
Net charge-offs (loans written off as unrecoverable) fell $400 million year-over-year, with the biggest improvement in commercial real estate — particularly office buildings, where losses dropped sharply as the bank worked through problem loans. Consumer credit card losses were essentially flat. The bank's reserve for bad loans remains healthy at $14.4 billion, covering more than twice its current non-performing loans.
The Bank Returned $29.5 Billion to Shareholders While Maintaining Strong Capital
| Metric | 2025 | 2024 |
|---|---|---|
| Common stock repurchases | $21.4B | — |
| Common dividends paid | $8.1B | — |
| CET1 capital ratio | 11.4% | 11.9% |
| Regulatory minimum CET1 | 10.0% | — |
The bank authorized a new $40 billion share repurchase program in July 2025, buying back $21.4 billion of stock during the year while paying $8.1 billion in dividends. The Common Equity Tier 1 (CET1) ratio — a core measure of a bank's financial cushion against losses — dipped from 11.9% to 11.4% as risk-weighted assets grew, but remains comfortably above the 10.0% regulatory minimum, leaving room for continued capital returns.