Bank of America’s stock surged 4.7% on Wednesday, nearing its 52-week high of $52.88, after the bank posted stronger-than-expected Q3 2025 earnings, fueled by record net interest income and business growth.
The bank reported net income of $8.5 billion, up from $6.9 billion a year earlier, while diluted earnings per share rose 31% to $1.06.
CEO Brian Moynihan credited substantial improvement in return on assets and increased loan and deposit growth for strong third-quarter growth.
“As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%. With continued organic growth, every line of business reported top and bottom-line improvements,” said Moynihan.
Bank of America’s stock rose 23% over the year.
Revenue rose 11% year-over-year to $28.1 billion, driven by higher net interest income, investment banking, asset management and trading revenue.
It marked the fifth straight quarter of rising net interest income, which rose 9% to $15.2 billion. This growth signals that the bank’s lending business remains resilient, despite the Federal Reserve’s shift in outlook towards rate cuts.
The strong results underscore the strength of a diversified model.
“We believe our investments in technology, talent and client experiences aided in an improved efficiency ratio as well as operating leverage.”
Alastair Borthwick, Executive Vice President and CFO,
The consumer business remained a cornerstone, with average deposits nearing $1.99 trillion, marking a 4% increase from the previous year, and accompanied by a reported 6% increase in card spending.
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Additionally, Bank of America, along with nine other major banks, is reportedly exploring stablecoins pegged to G7 currencies, according to a Reuters report, reflecting a broader shift toward digital finance.
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The BofA stock, which has seen a 19% year-to-date increase, is gaining less ground compared to Morgan Stanley, which also released earnings on Wednesday. Morgan Stanley hit a new high, trading 5.9% higher, and is up 32% year-to-date.
This earnings season saw strong performances across major banks, including BofA, JPMorgan, Morgan Stanley, Wells Fargo, Goldman Sachs, and BlackRock. All of these exceeded expectations with their increased growth, benefiting from improved market sentiment and AI-driven economic expansion.
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