NEW YORK, Jan 14, 2026, 16:44 EST — After-hours
- Shares of Bank of America dipped roughly 3.7% post-close, following a session marked by significant swings.
- The bank exceeded fourth-quarter profit forecasts, posting gains in both net interest income and trading revenue.
- Traders are zeroing in on Bank of America’s 2026 interest-income forecast and where U.S. rates might head next.
Bank of America shares dropped roughly 3.7% to $52.48 in after-hours trading Wednesday, following a volatile day where the stock swung between $55.67 and $51.66.
The shift comes as major U.S. banks begin releasing their earnings, with investors eager to gauge the outlook for lending, trading, and credit in 2026. Bank of America draws particular attention, given that its consumer portfolio and deposit base provide key insights into household demand.
The bank projects net interest income (NII)—the gap between earnings on loans and deposits—to climb 7% this quarter, reaffirming its 5% to 7% growth outlook for fiscal 2026. After a robust start to the year, investors are scrutinizing bank stocks more closely. Jake Johnston, deputy chief investment officer at Advisors Asset Management, noted the market is “taking a little time to digest.” (Reuters)
Bank of America reported a fourth-quarter net income of $7.6 billion, or 98 cents per share, on $28.4 billion in revenue. Net interest income climbed about 10% to $15.8 billion, and sales and trading revenue also rose 10%, reaching $4.5 billion. The bank returned $8.4 billion to shareholders via dividends and buybacks. CEO Brian Moynihan said, “we are bullish on the U.S. economy in 2026,” though he also mentioned “any number of risks.” (SEC)
A filing revealed the bank’s full-year net income came in at $30.5 billion, or $3.81 per diluted share. It also announced an investor conference call and webcast set for Wednesday to go over the results and related details. (SEC)
Shares of other major banks slipped late in the session, with JPMorgan Chase off roughly 0.9%, Wells Fargo tumbling about 4.6%, and Citigroup retreating around 3.3%.
Part of the stress in the sector stems from investors’ expectations around the pace of rate cuts and the impact on banks’ earnings. While dropping deposit rates can boost margins, swift rate reductions also squeeze returns on new loans and securities.
Bank of America’s outlook is shouldering much of the burden here. Management is signaling higher NII ahead, though that hinges on deposit pricing, loan demand staying steady, and the yield curve’s direction.
A cleaner downside scenario is also possible. Should labor conditions weaken more and delinquencies increase, credit costs could surge rapidly, even at banks showing solid spending and payment figures.
Thursday brings another batch of earnings, with Goldman Sachs and Morgan Stanley set to report alongside BlackRock. This comes amid a week packed with fresh inflation and consumer spending numbers. (Investopedia)
Bank of America now faces a key challenge: will its forecasted boost in net interest income materialize in first-quarter results? And could changing rate expectations push the bank to adjust its 2026 projections?
