Bank of America Profit Soars by 23.18% to $8.5bn in Q3
Bank of America (BoA) profit after tax soared by 23.18% year on year to $8.5 billion, details from its third quarter of 2025 earnings release for 2025 revealed.
The bank’s net income came in at $8.5 billion compared to $6.9 billion in the comparable period in 2024. Its diluted earnings per share printed $1.06 compared to $0.81, up 31%.
Revenue jumped by 11% to $28.1 billion, reflecting higher net interest income (NII), investment banking and asset management fees, and sales and trading revenue.
Net interest income rose by 9% year on year to $15.2 billion, driven by higher NII related to Global Markets activity, fixed-rate asset repricing, and higher deposit and loan balances, partially offset by the impact of lower interest rates, 5th consecutive quarter of sequential NII growth
The result showed that provision for credit losses settled at $1.3 billion, a decrease from $1.5 billion in 3Q24 and $1.6 billion in 2Q25. It recorded a net charge-offs of $1.4 billion, a decrease from $1.5 billion in 3Q24 and 2Q25.
Bank of America’s noninterest expense was $17.3 billion, up by 5% year on year, driven by higher revenue-related expenses and investments in people, brand and technology.
Its efficiency ratio improved 329 bps to 62%—increased 1% from 2Q25, driven primarily by investments in people and technology, as well as higher revenue-related expenses
The balance sheet remained strong with average deposit balances of $1.99 trillion, up by 4%, and it is the 9th consecutive quarter of sequential growth.
BOA average loans and leases of $1.15 trillion increased 9%, with growth across every business segment. Average Global Liquidity Sources came at $961 billion—common equity tier 1 (CET1) capital of $203 billion, up 1% from 2Q25.
CET1 ratio of 11.6% was well above the regulatory minimum. It returned $7.4 billion to shareholders – $2.1 billion through common stock dividends and $5.3 billion in share repurchases and increased the quarterly common stock dividend 8%.
The results showed that Bank of America’s book value per common share rose 7% to $37.95; tangible book value per common share rose 8% to $28.3912
BOA Chair and CEO Brian Moynihan commentated that strong net income growth drove third quarter diluted earnings per share up 31% from last year.
“This in turn drove strong improvement in our returns on assets and equity. Revenue grew 11% year-over-year. Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income.
“We also saw strong fee performance from our market-facing businesses. As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%. With continued organic growth, every line of business reported top and bottom-line improvements”
Executive Vice President and CFO Alastair Borthwick said, “This quarter’s performance demonstrated the earnings power of our diversified model. We believe our investments in technology, talent and client experiences aided in an improved efficiency ratio as well as operating leverage.
“Our strong capital position enabled us to support clients, growing average loans by $25 billion from the second quarter, and to return $7.4 billion to shareholders through dividends and share repurchases.
“Liquidity and capital improved and our asset quality included a decline in net charge-offs, positioning us to be well-prepared to grow with clients and deliver for shareholders”. US Shutdown Masks Far Deeper Threat, CEO Says
