Khadija Saeed

Bank of America Corp said it changed accounting methods for certain tax-related equity investments, an adjustment that would have cut its common equity tier 1 ratio — a key measure of bank capital — by 13 basis points as of Sept. 30, 2025, on a pro forma basis. Applied retrospectively, retained earnings as of Sept. 30 fell $1.7 billion and CET1 capital would have decreased about $2.1 billion, it said; it also estimated its third-quarter effective tax rate would have been about 20% versus 10.4% previously reported. The lender said the new methods are preferable because they “better align the financial statement presentation with the economic impact” of the investments. SEC