New York, Jan 13, 2026, 18:18 EST — After-hours
- Bank of America shares were down about 1.2% after the bell as big banks stayed under pressure
- A proposed 10% cap on credit-card interest rates has put consumer-lending profits in focus
- Investors look to Bank of America’s quarterly results for clues on margins, credit and guidance
Bank of America stock slipped on Tuesday, with shares last down about 1.2% at $54.54 in after-hours trade.
The move comes at an awkward moment for the lender: policy headlines are starting to hit the consumer-lending story just as investors pivot into bank earnings and try to pin down what lower rates do to margins.
President Donald Trump’s proposed one-year 10% cap on credit-card interest rates, floated on Truth Social, has surprised parts of the industry and revived a debate over how profitable — and how politically exposed — credit cards have become. JPMorgan Chief Financial Officer Jeremy Barnum told reporters the cap “would be very bad for consumers, very bad for the economy,” arguing it would force banks to cut back credit. 1
Bank stocks sold off on Monday after Trump called for the 10% cap to start Jan. 20, with Bank of America and JPMorgan sliding 1.6% and 2.5% in early trading, Reuters reported. UBS Global analysts said it “would take an Act of Congress” for rate caps to take effect, adding to the view on desks that the proposal faces a hard path in Washington. 2
Tuesday’s macro backdrop did not help. The U.S. Consumer Price Index rose 0.3% in December and was up 2.7% year-on-year, while core CPI — which strips out food and energy — rose 0.2% on the month and was up 2.6% from a year earlier, a Reuters report showed. Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, warned core inflation often runs hot in January, saying it has jumped “by 0.4% and more” in each of the past four Januarys. 3
Big-bank earnings also set a stern tone. JPMorgan beat estimates on a trading lift, but its shares fell as investment banking revenue missed expectations; David Wagner at Aptus Capital Advisors said JPMorgan was coming off a year where “the bar for perfection is set pretty high.” 4
For Bank of America, investors are likely to press management on net interest income — the gap between what a bank earns on loans and pays out on deposits — and whether deposit costs keep easing as rates drift lower. The bank has said it expects fourth-quarter net interest income (fully tax equivalent) of about $15.6 billion to $15.7 billion, and management has flagged non-interest expenses near $17.3 billion for the quarter. 5
Credit-card talk will sit in the middle of that. Even if Washington never lands a cap, traders want to know what a serious push would mean for credit limits, rewards and underwriting, and whether borrowers get pushed into costlier corners of the market.
But there is an obvious downside path. If Bank of America’s outlook implies weaker interest income, higher provisions for credit losses, or any stumble in consumer credit quality, the stock could have a harder time finding a bid with policy risk already in the price.
The next catalyst is Bank of America’s fourth-quarter results on Wednesday, with the release due around 6:45 a.m. ET and an investor call scheduled for 8:30 a.m. ET. 6
