Bank of America Shines with Record Net Interest Income and Strong Organic Growth in Q2 2025
In its latest earnings call, Bank of America reported a stellar second quarter (Q2) 2025, driven by strong organic growth across all businesses, record net interest income (NII), and improving market conditions.
According to CEO Brian Moynihan, the bank's revenue grew 4% year-over-year, with earnings per share increasing 7%. Net income after tax stood at $7.1 billion, while return on assets was a respectable 83 basis points. Notably, the company recorded its fourth consecutive quarter of NII growth, reaching a record high of $14.8 billion – a 7% increase from Q2 2024.
The bank's investment in technology and digitization has also begun to pay off, with AI practices starting to show tangible benefits. Moynihan highlighted the company's continued commitment to innovation, saying "we're looking forward to much more" from these investments.
Bank of America's consumer business performed well, with net charge-offs decreasing during the quarter. However, commercial real estate and office charge-offs remained elevated, offsetting some of the gains in consumer lending. Despite this, the bank reported its sixth consecutive quarter of net charge-offs at around $1.5 billion – a level that, according to Moynihan, was expected.
The company's market-related revenue gained momentum throughout Q2 2025, with sales and trading growth continuing for the 13th consecutive quarter. Investment banking fees also improved, reaching more than $1.4 billion in firm-wide revenue.
Alastair Borthwick, CFO of Bank of America, pointed out that the bank's deposit pricing remained disciplined during a period of sustained deposit growth, which has now lasted for eight quarters. This achievement was commended by Moynihan as "great work" by the company's teams.
The overall market backdrop is positive, with improving credit quality, solid consumer spending data, and growing household net worth contributing to Bank of America's success in Q2 2025. With a modestly growing economy predicted for the end of the year – around 1.5% growth, according to the company's research team – and no expected Fed rate cuts until next year, the bank's prospects look bright.
