New York, Jan 16, 2026, 18:15 ET — After-hours
- Shares of Bank of America climbed roughly 0.7% in after-hours trading.
- The bank revealed preferred stock dividend payments following the market close.
- Attention shifts to the Fed’s late-January meeting and the upcoming batch of bank earnings.
Bank of America shares climbed 0.7% to $52.97 in after-hours trading Friday, following a day where the stock fluctuated between $52.27 and $53.38.
As U.S. markets gear up for a long weekend, investors remain fixated on one key question: can big banks sustain growth in interest income amid shifting rate expectations?
On Wednesday, the lender reported earnings of $7.6 billion, or 98 cents a share, driven by a 9.7% jump in net interest income (NII) to a record $15.75 billion. NII, which reflects earnings on loans minus deposit costs, is expected to grow 7% this quarter, with the bank reaffirming its 5%-7% growth target for 2026. Sales and trading revenue climbed 10% to $4.5 billion amid volatile markets. CEO Brian Moynihan expressed a “bullish” outlook on the U.S. economy for 2026, while also highlighting some risks. Shares dipped about 3% on the day. Jake Johnston of Advisors Asset Management said the market was “taking a little time to digest” the results, and Aptus Capital’s David Wagner described Bank of America as a “North Star” for tracking consumer health. (Reuters)
Bank of America edged ahead of several rivals by Friday’s close. Citigroup gained 0.49%, but Wells Fargo slipped 0.65%, as the S&P 500 and Dow finished just under their previous levels. (MarketWatch)
After the bell, Bank of America announced its board approved regular cash dividends on multiple preferred stock series, set for February and March payments. This includes a $0.28516 dividend on the floating-rate Series E, payable Feb. 17 to shareholders of record as of Jan. 30. (Bank of America)
Rates remain the main driver behind the moves. On Friday, Federal Reserve Vice Chair Philip Jefferson described the current policy stance as “well positioned” ahead of the Jan. 27-28 meeting. This follows cuts in late 2025 that set the policy rate between 3.50% and 3.75%. (Reuters)
For Bank of America, sensitivity works in both directions. A more gradual easing can safeguard interest margins, yet a steep rate decline might squeeze earnings on loans more quickly than the cost of deposits falls.
Another, more straightforward risk is credit. If consumer spending or business borrowing strains again, it will hit provisions—not trading gains. And early in earnings season, the stock tends to be unforgiving about that.
Bank results outside the main players have been mixed. Investors are quick to reward clear beats but are harsh on any hint of guidance uncertainty, even when headline profits hold steady.
U.S. stock markets remain closed Monday in observance of Martin Luther King, Jr. Day. Trading will pick back up Tuesday. The upcoming key event for bank stocks is the Federal Reserve’s meeting scheduled for Jan. 27-28. (New York Stock Exchange)
