TLDR
- Bank of America posted Q3 earnings of $1.06 per share, beating analyst estimates of 95 cents per share
- Investment banking fees surged 43% to $2 billion, crushing internal forecasts of 10-15% growth
- Net interest income hit a record $15.2 billion in the quarter, up 9% year-over-year
- The bank raised its Q4 net interest income outlook to $15.6-$15.7 billion, an 8% increase from last year
- Global dealmaking reached $3 trillion in the first nine months of 2025, the highest since 2021
Bank of America reported third quarter earnings that sailed past Wall Street expectations on Wednesday. The bank earned $8.5 billion in net income, translating to $1.06 per share for the three months ending September 30.
Analysts surveyed by LSEG had predicted earnings of 95 cents per share. The actual results beat that forecast by 11 cents.
Last year during the same period, the bank earned $6.9 billion or 81 cents per share. The year-over-year comparison shows strong profit growth.
Shares jumped about 4% in premarket trading after the earnings release. The stock has lagged behind competitors and the KBW Bank Index throughout 2025.
Investment Banking Crushes Forecasts
The investment banking division delivered the biggest surprise of the quarter. Fees climbed 43% to $2 billion compared to the same quarter last year.
This growth far exceeded the bank’s own projections. Management had earlier guided for just 10-15% growth in investment banking fees.
The surge reflects a broader revival in corporate deal activity. Companies regained confidence to pursue large mergers and acquisitions throughout the quarter.
Global megadeals totaled $1.26 trillion during the period. Dealogic data shows this marks a 40% increase from last year and the second-highest third quarter total ever recorded.
Total worldwide dealmaking hit $3 trillion in the first nine months of 2025. According to Mergermarket, that’s the strongest performance since the pandemic peak in 2021.
Other major banks posted similar results. JPMorgan Chase and Citigroup both beat profit estimates thanks to strong investment banking performance.
Record Net Interest Income Performance
Bank of America’s core lending business also delivered impressive results. Net interest income reached $15.2 billion during the quarter, up 9% from a year earlier.
This metric measures the gap between interest earned on loans and interest paid on deposits. It represents a crucial revenue source for traditional banks.
CEO Brian Moynihan credited strategic decisions for the record performance. “Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income,” he stated.
The bank improved its fourth quarter guidance based on these results. Management now expects Q4 net interest income between $15.6 billion and $15.7 billion.
That represents an 8% increase compared to the same period last year. The revised forecast raises the lower end of the previous range.
The Federal Reserve cut rates by 25 basis points in September. This move could boost borrowing demand from consumers and businesses in coming months.
Bank of America previously indicated it expects to achieve record net interest income for all of 2025. The third quarter results support that projection.
The bank reported loan and deposit growth across multiple business lines. This expansion contributed to the record interest income figures during the quarter.
