New York, Jan 15, 2026, 18:26 EST — After-hours
- Bank of America shares edged up in after-hours trading following a quiet session on Thursday.
- Investors remain focused on the bank’s net interest income projections, while also factoring in policy risks tied to credit-card rates.
- Attention turns to Washington headlines and the Fed’s upcoming meeting on Jan. 27-28.
Shares of Bank of America Corp (BAC) inched higher in after-hours trading Thursday. Investors weighed the lender’s strong interest-income forecast against the ongoing efforts in Washington to cap credit-card rates. The stock climbed roughly 0.2% to $52.59.
The upcoming session is crucial as major U.S. banks have become a play on rates and politics this week. Earnings provided fresh figures, yet the main focus remains on how much borrowing costs will drop — plus the potential impact of new consumer lending regulations.
Bank of America faces unusually sharp tension. It serves as a key indicator for the U.S. consumer and how rising rates are filtering into deposit costs and loan pricing.
On Wednesday, the bank posted fourth-quarter net income of $7.6 billion, or 98 cents per share, surpassing analysts’ estimate of 96 cents. Trading revenue jumped, while net interest income rose 9.7% to $15.75 billion. The bank projects net interest income to increase about 7% this quarter and stuck to its forecast of 5% to 7% growth for fiscal 2026. “With consumers and businesses proving resilient … we expect further economic growth,” CEO Brian Moynihan said. (Reuters)
A regulatory filing revealed Bank of America’s full-year net income came in at $30.5 billion. The bank noted that this quarter’s numbers include an accounting change for some tax-related equity investments. Investors were directed to the earnings call and the accompanying presentation materials for more details. (Bank of America Corporation)
Loan growth has turned into a key pillar after investors long griped about weak demand. Average loans climbed 8% year-over-year, with CFO Alastair Borthwick noting gains across all consumer borrowing categories. “We’ve seen growth in all of the consumer borrowing categories,” he told reporters, adding the bank anticipates mid-single-digit loan growth in 2026. (Reuters)
The market’s mood has been jittery. Shares of Bank of America and Citigroup dropped Wednesday even though both posted better-than-expected profits. Investors worried about President Donald Trump’s plan to cap credit-card interest rates and cashed out after a solid 2025 rally. “After a nice run … you’re seeing profit-taking,” noted Michael O’Rourke, chief market strategist at JonesTrading. (Reuters)
Rates remain a key factor, though the picture is far from straightforward. Investors in bonds are uneasy about a Justice Department probe into Federal Reserve Chair Jerome Powell, fearing it could shake trust in the Fed’s independence. This uncertainty has influenced money flows and pushed the yield curve steeper — with long-term yields climbing faster than short-term ones. That scenario can boost banks’ lending margins but risks rattling overall markets and curbing credit demand. (Reuters)
Peers delivered a mixed message. Wells Fargo came up short on some forecasts and flagged the credit-card rate-cap proposal as a possible drag on lending, knocking its shares lower Wednesday. JPMorgan, reporting earlier this week, also highlighted the policy risks tied to consumer credit. (Reuters)
The risk for Bank of America is clear: if talk of a rate cap becomes reality, or the rate trajectory changes again, it could squeeze net interest income just as the bank expects it to rise. On Thursday, San Francisco Fed President Mary Daly said policy is “in a good place” and any adjustments should be made cautiously — a signal markets took as strong support for a pause at the upcoming meeting. (Reuters)
As Friday’s session approaches, traders are eyeing fresh clues on the credit-card cap and shifts in forecasts for the Federal Reserve’s Jan. 27-28 meeting, now a key focus for bank shares. (Federal Reserve)
