NEW YORK, Jan 15, 2026, 09:19 EST — Premarket
- Bank of America shares dropped 3.7% in premarket action, poised to deepen their post-earnings slide
- The lender surpassed fourth-quarter profit expectations and reaffirmed its 2026 net interest income forecast
- Investors are grappling with the Fed’s rate trajectory amid ongoing policy noise over a proposed cap on credit-card rates
Shares of Bank of America dropped 3.7% to $52.48 in Thursday’s premarket, signaling a soft start following a broad selloff in bank stocks the day before.
The day before, the lender topped analysts’ fourth-quarter profit forecasts and projected a 7% rise in net interest income — the gap between loan earnings and deposit costs — for the current quarter. It also stuck to its 5% to 7% full-year 2026 growth outlook. Still, its shares dropped nearly 3.2% on Wednesday as investors “take a little time to digest,” said Jake Johnston, deputy chief investment officer at Advisors Asset Management, after a strong run-up into earnings. David Wagner, head of equities at Aptus Capital, noted the report offered no hint “that the consumer is weakening whatsoever.” Reuters
The sector is grappling with policy uncertainty following President Donald Trump’s push to cap credit card interest rates at 10%, a move bankers say could restrict credit availability. “As banks pursue growth in 2026, they’ll remain laser-focused on managing a complex risk landscape,” said Peter Torrente, KPMG’s U.S. banking sector leader. Reuters
Bank of America reported fourth-quarter net income of $7.6 billion, or 98 cents per share, with revenue up 7% to $28.4 billion. Net interest income climbed 10% to $15.8 billion, while sales and trading revenue also gained 10%, hitting $4.5 billion. The bank noted these results include an accounting change related to certain tax-driven equity investments. CEO Brian Moynihan expressed optimism, saying he’s “bullish on the U.S. economy in 2026.” During the quarter, the bank returned $8.4 billion to shareholders, including $6.3 billion in share buybacks. SEC
Despite the beat, the focus is shifting to upcoming reports: loan growth, deposit pricing, and if lower rates continue to ease funding costs more than they squeeze lending margins. Traders keep a close eye on net interest income since it reacts fast to changing rate forecasts.
The downside scenario is gaining traction. Banks are resisting a proposed one-year 10% cap on credit card rates, warning it would squeeze profits and probably lead to stricter lending criteria, particularly for higher-risk customers.
Thursday morning brought new labor market figures that shook up rate expectations. U.S. initial jobless claims dropped by 9,000 to 198,000 for the week ending Jan. 10, coming in below forecasts. Reuters noted that seasonal adjustment quirks probably played a role.
Behind the scenes, Wall Street’s major banks continued to reveal how volatile trading and dealmaking remain from quarter to quarter. On Thursday, both Morgan Stanley and Goldman Sachs posted profits above forecasts, raising questions about whether this momentum can last if market volatility eases.
Bank of America is now eyeing the Federal Reserve’s policy meeting on Jan. 27-28. This event is crucial for the rate outlook and directly impacts bank earnings projections.
