From The Motley Fool · The Motley Fool Team · · 50s
Bank of America 3 Key Takeaways for Long-Term Investors
Bank of America's 2026 earnings show strong growth, regulatory costs baked in, and low loan-to-deposit ratios protecting margins.
In brief
Bank of America's 2026 earnings show strong growth, regulatory costs baked in, and low loan-to-deposit ratios protecting margins. Bank of America's 2026 earnings show net interest income growth exceeding 8% in 2027, regulatory settlement costs already embedded, and low loan-to-deposit ratios protecting margins from…
Net Interest Income Growth Exceeds 8% in 2027
Bank of America expects net interest income growth to exceed 8% in 2027, higher than 2026 and original 5%-7% range.
“For 2027, we currently expect full-year growth of NII to be 8% or more, higher than 2026, and again, higher than our original 5%-7% range.”
Regulatory Settlement Costs Already Baked In
A $1.2 billion regulatory settlement charge reduced reported earnings, with ongoing costs embedded in operating expenses.
“A $1.2 billion non-tax-deductible regulatory settlement charge for failure to adhere to anti-money laundering compliance lowered reported earnings.”
Low Loan-to-Deposit Ratios Protect Margins
Bank of America's low loan-to-deposit ratio allows it to compete on capabilities rather than price, with $2 trillion in deposits funding $1.25 trillion in loans.
“Our focus on operating deposits and our low loan-to-deposit ratio allow us to compete on capabilities rather as opposed to price.”
The short version
Bank of America's 2026 earnings show net interest income growth exceeding 8% in 2027, regulatory settlement costs already embedded, and low loan-to-deposit ratios protecting margins from price wars.
