Oct 14, 2026 earnings call — Settlement, strong consumer and NII growth
Bank reported net income of $6.9 billion and expects full-year NII growth of approximately 8%.
Revenue $30.0B (est $30.6B) · EPS $1.08 (est $1.10)
Key quotes
"We understand the seriousness of compliance, and we are responsible for getting it right."
"We added another 200,000 in the quarter of net new core consumer checking accounts."
"We still expect to hit that full-year revised NII growth guidance of approximately 8%."
Analyst Q&A 15
capital plan vs growth
Q (Chris McGratty · KBW): Analyst asked how balance sheet growth and capital returns will be balanced between CET1 and TCE targets, and about operating leverage guidance for 2027.
A: They said they have considerable capital flexibility, will prioritize supporting clients and regulatory minimums, then return leftover capital to shareholders; no change to prior approach. They confirmed the 200-300 basis point operating leverage range remains their Investor Day expectation and may be higher, and they will guide for next year in Q4.
"Always our priority is going to be support the clients and the growth." — Alastair Borthwick (CFO)
NII drivers and consent order impact
Q (David Chiaverini · Jefferies): Analyst asked whether the 8%+ NII guide is all rate-driven and whether the consent order constrains operations.
A: They said NII improvement is driven mainly by deposit and loan growth, pricing rotation, and asset repricing, not just rates. On the consent order, they said there's no asset cap and they added people and technology, so it should not impede clients or normal operations.
"So it should not impact our clients in any way." — Alastair Borthwick (CFO)
consumer health and expense levers
Q (Manan Gosalia · Morgan Stanley): Analyst wanted more color on consumer strength and whether rising short-term rates or gas pressures show stress, and asked which expense levers drive operating leverage and whether the 200-300 bps excludes settlement charge.
A: Management said consumer credit metrics remain strong with steady deposits and spending up about 5%; gas spending crowds out some categories but overall activity is solid. They said the 200-300 basis points view is on adjusted expenses excluding the one-time settlement, and drivers include NII growth, fee growth across businesses, and disciplined headcount management.
"A lot of it drops straight to the bottom line, and that's really important." — Alastair Borthwick (CFO)
deposit growth and betas
Q (Ben Gerlinger · Citi): Analyst asked if non-interest-bearing deposit growth is assumed to continue despite expected rate hikes and requested deposit beta assumptions.
A: They said they assume low single-digit deposit growth and expect continued non-interest-bearing deposit growth driven by inflation and GDP, and that deposit betas should retrace on the way up similar to how they behaved coming down, with CD pricing to watch in consumer segments.
"Yes, we anticipate continued growth in our deposits." — Alastair Borthwick (CFO)
regulatory orders and capital metrics
Q (John McDonald · Truist): Analyst asked how the OCC/FinCEN orders evolved, lessons learned, and which capital metrics will govern (CET1 vs TCE targets).
A: They said they agreed to a settlement, understand what's required, and are deep in remediation with substantial costs and staff focused on completion. On capital, they wait for final rules expected in Q4 and monitor multiple metrics—CET1 and TCE—balancing capital, liquidity, and earnings, noting they currently have flexibility.
"We have a clear understanding of what we need to do." — Brian Moynihan (CEO·CHAIR)
markets NII and FICC effects
Q (Jim Mitchell · Seaport Global): Analyst sought confirmation that ex-markets NII should be above 8% and asked if higher rates or client activity was the main driver of FICC weakness.
A: They agreed ex-markets NII would likely grow faster than 8% and intend to pass NII benefits to the bottom line, but will provide specific guidance in Q4. For FICC, they said higher rates reduced client activity and asset prices, so the headwind was mainly client activity and mix rather than structural change.
"It's largely a client activity thing." — Alastair Borthwick (CFO)
AI productivity and succession
Q (Mike Mayo · Wells Fargo): Analyst asked how AI can raise revenue per employee and about CEO succession plans and timeline.
A: They said AI programs have produced many small productivity projects with paybacks and expect benefits to grow from about $250-300 million this year to $700 million next year, improving efficiency and enabling reinvestment. On succession, they said it's the board's decision, they work to develop talent continuously, and the board will decide the timing.
"AI has helped us." — Brian Moynihan (CEO·CHAIR)
balance sheet efficiency vs markets needs
Q (Ken Usdin · Autonomous): Analyst asked if reducing wholesale funding hurts trading or intermediation and where average earning assets head next, plus markets outlook for Q4.
A: They said markets and the rest of the bank are managed separately: they will support markets with balance sheet when returns justify it, while generally reducing short-term wholesale funding via deposits and securities paydowns to support loan growth. They do not guide quarterly markets results but expect less of the third-quarter impact in Q4 given moderating rate moves and seasonality.
"The two things are separate." — Alastair Borthwick (CFO)
quarter-end loan growth
Q (Matt O'Connor · Deutsche Bank): Analyst asked if late-quarter loan acceleration was meaningful or just timing noise, and about deposit pricing risk if loan growth increases competition for deposits.
A: They said quarter-end swings are normal and much of the volatility comes from warehouse and bridge lending, while core loan growth across middle market, business banking, and cards is steady. On deposit pricing risk, they said they have ample deposits and securities to fund growth, a low loan-to-deposit ratio, and do not expect to need to reach for funding that would push deposit betas materially higher.
"There is a lot of room to grow loans without thinking about needing to raise money to fund them" — Brian Moynihan (CEO·CHAIR)
NII split, consent costs, buybacks
Q (Erika Najarian · UBS): Analyst asked whether core NII could be ~10% ex-markets, whether consent order means more expenses, and how buybacks will be handled with GSIB surcharge uncertainty.
A: They said they don't separately guide core and markets NII, but directionally core banking should be higher than the consolidated 8% and they may provide more detail in Q4. On expenses, they said they've ramped people and technology for the consent order but view those costs as in the run rate and have reduced overall headcount; on buybacks they don't guide but said it's business as usual while awaiting final capital rules before changing plans.
"We need to wait for the final rules." — Alastair Borthwick (CFO)
investment banking outlook
Q (Scott Siefers · TD Cowen): Analyst asked whether the recent pause in IB activity is temporary or could be a lasting change.
A: They said investment banking fees are up 16% year-to-date, pipelines remain strong, and third-quarter softness reflects interest-rate driven pauses as buyers and sellers reprice; they remain constructive given loan growth, CapEx and AI-driven activity and will watch fourth-quarter developments.
"It feels to us like clients all around the world are active." — Alastair Borthwick (CFO)
agentic AI and deposit flight risk
Q (Steven Chubak · Wolfe): Analyst asked if agentic AI could drive deposit flight and whether banks can block agentic access to protect customer deposits, and whether managing to a 6% TCE hurt markets balance sheet deployment.
A: They said they're working with agent providers to keep humans in control before money moves and expect banking's safety and transactional needs to keep deposits stable; customers already have off-balance alternatives if they seek yield. On TCE, they said the 6% target did not constrain markets deployment—markets balance sheet grew year-over-year despite revenue swings—and balance sheet is deployed when returns justify it.
"we're working with various agent providers and others to like we worked with some of the aggregators to make sure that the customer is in control of the decision, the human remains in the loop before money is moved out of their account and items like that" — Brian Moynihan (CEO·CHAIR)
TCE flexibility and AML remediation
Q (Vivek Juneja · JPMorgan): Analyst asked how firm the 6% TCE target is and under what conditions they'd let it drift, and how investors should gain confidence that AML remediation is truly in the run rate after surprises.
A: They said 6% TCE is flexible and could drift with outsized growth; they are awaiting new capital rules and stressed they have room to grow and optimize balance sheet while continuing buybacks and dividends. On AML remediation, they said they achieved clarity in the order, remediation is underway with substantial staff and costs, and they are confident it's in the run rate.
"We just resolved the timely aspect of that, which is in the order." — Brian Moynihan (CEO·CHAIR)
markets franchise diversification
Q (Glenn Schorr · Evercore): Analyst asked whether they are building rates, FX, and commodities to balance a fixed-income-heavy markets franchise.
A: They said filling gaps has been a multi-year priority: they continue to invest in people, technology, and balance sheet to expand equities, rates, FX and commodities capabilities, and investors should expect continued growth in those areas to reduce franchise imbalance over time.
"We continue to invest there, and I think you should expect to see us continue to grow." — Alastair Borthwick (CFO)
decline in criticized commercial exposure
Q (Gerard Cassidy · RBC): Analyst asked what drove the 25% year-over-year decline in reservable criticized commercial exposure and whether trends continue into 2027, and asked about indirect exposure to AI site vendors.
A: They said the reduction was broad-based with a large improvement in commercial real estate office, helped by a strong consumer and economy; commercial charge-offs are very low and credit quality appears stable heading into 2027. On AI-related secondary exposure, they said underwriting already considers customer revenue diversity and concentrations, and their credit processes are designed to assess such risks.
"When you're talking about a decline like this, i.e. an improvement like this in res crit, it's obviously broad-based." — Alastair Borthwick (CFO)