New York, January 14, 2026, 08:41 EST — Premarket update.
- BAC slips roughly 1.2% in premarket following its Q4 earnings report
- Bank highlighted a jump in net interest income alongside robust equities trading for the quarter
- Investors will be listening closely to the 8:30 a.m. ET call for insights on the 2026 outlook covering rates, costs, and credit
Bank of America (BAC) slipped 1.2% in premarket action Wednesday, trading at $54.54, below Tuesday’s close of $55.22.
Bank of America delivered a fourth-quarter profit that outpaced Wall Street’s estimates and maintained its forecast for higher net interest income this year. The lender posted net income of $7.6 billion, or 98 cents per share, surpassing the 96 cents per share analysts had anticipated, according to LSEG data. It also projected a 7% increase in first-quarter net interest income and reaffirmed its 5% to 7% growth outlook for fiscal 2026. (Reuters)
This matters now as investors sift through bank earnings amid a cycle of easing rates. Net interest income — the gap between what banks earn on loans versus what they pay on deposits — can swing when rates drop quicker than loans get repriced. For BAC, the key question is whether its interest income bounce-back will last if the Fed cuts rates again.
Bank of America reported a 7% rise in fourth-quarter revenue, hitting $28.4 billion, with net interest income climbing 10% to $15.8 billion. Sales and trading revenue jumped 10% to $4.5 billion, led by a 23% surge in equities revenue to around $2.0 billion. The bank reserved $1.3 billion for credit losses and posted a 4% increase in noninterest expenses, totaling $17.4 billion. CEO Brian Moynihan said, “With consumers and businesses proving resilient … we expect further economic growth in the year ahead.” CFO Alastair Borthwick highlighted “strong liquidity and capital” after returning $8.4 billion to shareholders via dividends and buybacks. (SEC)
The premarket slide hints that some investors are reacting to more than just the earnings beat. Cost pressures, buyback activity, and shifts in credit trends can shake a big bank stock more sharply than the headline numbers. The market’s growing uneasy over what “normal” trading revenue means after a wild quarter.
Wells Fargo’s Q4 results underscored just how tight expectations remain. The bank fell short of analysts’ profit and net interest income estimates, pushing its shares down roughly 1.7% in premarket trading. (Reuters)
Citigroup reported on Wednesday, revealing quarterly profits dragged down by a charge linked to its exit from Russia. Yet, dealmaking and services showed strength, highlighting just how varied this earnings season is from one bank to another. (Reuters)
Investors are keeping an eye on Washington as well. A one-year cap on credit card interest rates, supported by President Donald Trump, could lower borrowing costs for certain consumers. However, analysts warn it might squeeze bank profits and reduce credit availability if passed. (Reuters)
The road ahead isn’t straightforward. Quicker rate cuts might reduce interest income more than anticipated, and a weakening labor market could strain consumer credit, driving up provisions. The trading boost seen this quarter usually loses momentum once volatility subsides.
All eyes turn to management’s remarks during Bank of America’s earnings call at 8:30 a.m. ET Wednesday. Investors are set to dig into deposit pricing, cost controls, and the assumptions driving the 2026 net interest income outlook. (Bankofamerica)
