Bank of America Profit Rises as Market Volatility Boosts Trading Revenue

Bank of America reported a strong fourth-quarter profit on Wednesday, January 14, 2026, supported by improved trading performance and steady net interest income as client activity picked up amid volatile markets.

Shares rose in early trading after the bank reported results that beat analyst expectations on both earnings and revenue.

Market volatility increased late last year as investors repositioned portfolios around U.S. interest-rate expectations and broader macro uncertainty, boosting activity across the bank’s markets businesses.

Bank of America said sales and trading revenue rose 10% to $4.5 billion, reflecting stronger client flows and healthier performance in its Global Markets division.

“Our fourth-quarter results capped off a strong year of earnings,” CEO Brian Moynihan said in prepared remarks, adding that the bank continues to see resilience across consumers and businesses.

2026 outlook: Net interest income in focus

A key highlight from the update was management’s 2026 outlook for net interest income (NII), a core profitability metric for banks.

Bank of America said it expects NII to increase 5% to 7% in 2026, reaching up to $65 billion, supported by higher client balances and stable deposit trends.

The bank’s wealth segment also remained a major strength, with client balances rising and overall client assets reaching new highs.

Quarterly performance

For Q4, Bank of America reported:

• Net income: $7.6 billion
• Earnings per share: $0.98
• Sales & trading revenue: $4.5 billion (+10%)

The bank said the results were aided by stronger market-related income and ongoing stability in consumer credit trends.

Credit quality

Provision for credit losses was $1.31 billion, down from $1.45 billion in the year-ago quarter, pointing to continued confidence in borrower health despite ongoing macro uncertainty.

Summary

Bank of America’s Q4 profit rose to $7.6 billion, supported by a 10% rise in trading revenue as volatile markets lifted client activity. The bank posted earnings of $0.98 per share, beating analyst expectations, and guided for 5%–7% growth in net interest income in 2026, potentially reaching up to $65 billion.

Frequently asked questions (FAQs)

Q1: Why did Bank of America’s profit rise in Q4?

The increase was driven by stronger sales and trading revenue and steady net interest income as clients traded more actively in volatile markets.

Q2: How much did trading revenue grow?

Sales and trading revenue rose 10% to $4.5 billion.

Q3: What is Bank of America’s outlook for 2026?

Management expects net interest income (NII) to grow 5% to 7%, potentially reaching $65 billion.

Q4: Did credit conditions worsen in the quarter?

The provision for credit losses declined year-on-year, suggesting stable credit quality trends.

Q5: What’s the key metric investors are watching next?

Net interest income (NII) is likely to remain a major focus in 2026 as rate expectations shift and deposit competition evolves.