New York, January 15, 2026, 05:39 EST — Premarket
- BAC slipped to $52.48, down roughly 3.7% from its previous close in early premarket trading
- The bank topped profit forecasts for the fourth quarter, though traders are focused on its 2026 net interest income projections
- U.S. lenders are once again facing policy risk tied to a proposed cap on credit-card interest rates
Bank of America Corp shares slipped in premarket trading Thursday, continuing their retreat after the bank’s quarterly earnings report. The stock last traded around $52.48, down roughly 3.7%.
The early move matters as major U.S. banks aim to shape expectations for 2026 while investors reevaluate interest rate trajectories and consumer credit outlooks. Even a beat can fall short if guidance unsettles the market.
Bank of America’s net interest income—the difference between earnings on loans and costs on deposits—is the crucial figure. This margin can swing quickly as rate expectations change, frequently dictating daily moves in bank shares.
On Wednesday, the lender reported fourth-quarter net income of $7.6 billion, or 98 cents per share, beating analyst estimates of 96 cents. This was driven by a 10% jump in sales and trading revenue to $4.5 billion. The bank projects net interest income will rise 7% in the current quarter and reiterated its 5% to 7% growth target for 2026. Despite the beat, its stock fell roughly 3% during regular trading. CEO Brian Moynihan signaled expectations for “further economic growth,” while Jake Johnston from Advisors Asset Management noted that “a little bit of a pullback” is typical after a rally. (Reuters)
A regulatory filing on Wednesday confirmed the quarterly profit and revealed full-year 2025 net income at $30.5 billion, or $3.81 per diluted share. The filing also announced that the bank will host an investor conference call and webcast to go over the results. (SEC)
The bank highlighted stronger borrowing demand as a key driver. Chief Financial Officer Alastair Borthwick told reporters, “We’ve seen growth in all of the consumer borrowing categories.” The market is now focused on whether that momentum will hold if interest rates come down further. Analysts at S&P Global Market Intelligence expect loan growth to pick up into 2026, noting that markets are pricing in two more Fed rate cuts this year. (Reuters)
Bank stocks have been unsettled this week amid political noise. Concerns over President Donald Trump’s plan to cap credit card interest rates at 10% have rattled the sector. JPMorgan executives warned the move could pinch consumers and crimp profits. Michael O’Rourke, chief market strategist at JonesTrading, noted the group was seeing some profit-taking “after a nice run,” and while the cap “may never go forward,” bank leaders “couldn’t rule it out.” (Reuters)
Investors are now swapping insights across the sector — focusing not only on earnings beats but also on loan growth, deposit expenses, and whether the recent uptick in trading can hold if markets settle.
Two clear risks stand out. Interest spreads could tighten if rate cuts happen sooner than expected or if deposit competition heats up again. On top of that, a softer jobs market might drive credit costs higher, following an extended period of stable consumer credit.
Moynihan chimed in on the White House’s investigation into Federal Reserve Chair Jerome Powell, emphasizing that an “independent Fed” is crucial to stabilizing the economy. Executives on Wall Street have cautioned that political interference with the central bank might rattle bond markets and drive up interest rates. (Reuters)
Traders are now focused on how the stock reacts during regular trading to Bank of America’s 2026 net interest income targets, along with whether it holds up as other banks report their earnings. The Fed’s next policy meeting is set for Jan. 27-28. (Federal Reserve)
