New York, Jan 14, 2026, 11:47 EST — Regular session
- Bank of America shares fell roughly 4% following its quarterly earnings report
- Net income climbed in the fourth quarter as trading and interest income both saw gains
- Investors are zeroing in on net interest income and lending trends projected for 2026
Bank of America shares dropped roughly 4% to $52.37 on Wednesday, slipping back after initially rising post-earnings. JPMorgan, Citigroup, and Wells Fargo also fell.
This shift is significant as major U.S. banks are leading the earnings season, with investors closely watching rate-sensitive lenders for signs on margins, loan demand, and consumer resilience.
Markets remain jittery over the next move in interest rates. “Banks have had a very strong start to the year and markets are taking a little time to digest,” said Jake Johnston, deputy CIO at Advisors Asset Management, as Wall Street’s key indexes edged lower. (Reuters)
Bank of America reported fourth-quarter net income of $7.6 billion, or 98 cents per share. Revenue, after deducting interest expenses, increased 7% to $28.4 billion. Net interest income jumped 10% to $15.8 billion, and sales and trading revenue also rose 10%, hitting $4.5 billion. The bank set aside $1.3 billion for credit loss provisions, covering expected loan defaults. (SEC)
Investors are digging into what lies ahead. Net interest income—the difference between earnings on loans and costs on deposits—is projected to climb 7% this quarter. The bank also confirmed its forecast of 5% to 7% growth in net interest income for fiscal 2026, Reuters reported. (Reuters)
Loan growth fits into that strategy. “We’ve seen growth in all of the consumer borrowing categories,” Chief Financial Officer Alastair Borthwick told reporters, with average loans and leases climbing 8% to $1.17 trillion, according to Reuters. (Reuters)
Some investors continue to view Bank of America as a key indicator of household finances. “We tend to look at Bank of America as the North Star to reconcile the health of the consumer,” David Wagner, head of equities at Aptus Capital, said. He noted the report revealed no evidence “that the consumer is weakening whatsoever.” (Reuters)
Still, strong results can get punished if expectations were already lofty. Bank stocks have surged over the last year, and investors are quick to lock in gains when earnings come in without a noticeable beat.
Consumer lending faces policy uncertainty. Bank leaders caution that President Donald Trump’s plan to cap credit card interest rates at 10% might lead lenders to tighten credit availability. Should the proposal gain steam, it could weigh on both growth and profits. (Reuters)
The Federal Reserve’s January policy meeting on Jan. 27-28 is the next major event to watch. Bank investors will be focused on whether the Fed signals a steady rate path or another shift — and how that could impact net interest income through the first half of 2026. (Federal Reserve)
