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Can Bank of America Sustain Revenue Growth on Stronger Loans & NII?
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Key Takeaways
Bank of America's broadening commercial and consumer loan growth supports interest-earning assets.
BAC expects NII growth of 7-8% this year, aided by loan and deposit growth, and asset repricing.
Bank of America sees wealth management and AUM fees rising 10-15% y/y in Q3'26.
Bank of America’s (BAC - Free Report) revenue outlook remains supported by broadening loan growth and sustained net interest income (NII) momentum. At the Barclays Global Financial Services Conference earlier this month, management said that commercial loans are growing at a mid- to upper-single-digit pace, while consumer loans are increasing at a low- to mid-single-digit rate. This provides a solid base for continued growth in interest-earning assets.
Commercial lending remains the main driver. Growth has expanded beyond capital-markets-related financing into core middle-market, large-corporate and small-business lending, with management expecting a pace similar to the high-single-digit growth seen in the previous quarter.
This loan momentum is expected to continue to support BAC’s NII trajectory. NII saw a 6.7% compound annual growth rate (CAGR) over 2020-2025, with the uptrend continuing in the first six months of 2026. At the conference, management indicated that NII growth should be 7-8% this year, supported by loan and deposit growth, and the continued repricing of fixed-rate assets.
The interest rate environment could provide an additional tailwind. Management said that higher rates (the Fed raised its target range by 25 basis points to 3.75-4.00% on Sept. 16) would further support NII and expressed greater confidence in its medium-term 2.3% net interest margin (NIM) target. Notably, Bank of America’s roughly $2-trillion deposit base also provides a funding advantage, although a sharper rise in rates could eventually temper loan demand and financing activity.
Beyond NII, fee revenues remain mixed but offer support. BAC expects investment banking (IB) fees of $1.6-$1.8 billion in third-quarter 2026, below $2 billion in third-quarter 2025. Trading revenues are expected to be flat year over year, while wealth management and AUM fees are expected to rise 10-15% year over year. With NII accounting for nearly 60% of total revenues, sustained commercial loan growth, favorable asset repricing and continued deposit strength should keep BAC’s core revenue engine moving higher. While capital markets volatility may create some quarter-to-quarter unevenness, the current loan and NII trends suggest that the bank has a solid foundation to sustain revenue growth.
Image Source: Zacks Investment Research
Let Us Take a Look at the Revenue Trend of BAC’s Peers
Bank of America’s peers like JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) are also witnessing solid growth in revenues.
JPMorgan’s revenues rose roughly 19% year over year in the first half of 2026 to $107.2 billion, supported by strong markets and IB activity, higher NII, and fee growth. The Zacks Consensus Estimate for JPMorgan’s 2026 revenues is pegged at $206.6 billion, suggesting a year-over-year rise of 13.2%.
Morgan Stanley’s revenues increased 21% year over year to $41.93 billion in the first half of 2026, driven by robust IB, trading and wealth-management performance. The Zacks Consensus Estimate for Morgan Stanley’s 2026 revenues is $81.9 billion, indicating a rise of 15.9%.
BAC’s Price Performance, Valuation & Estimates
In the past year, shares of Bank of America have gained 8% compared with the industry’s 11.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BAC trades at a trailing 12-month price-to-tangible book ratio of 1.97, well below the industry average of 3.16.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BAC’s 2026 and 2027 earnings indicates year-over-year growth rates of 22.6% and 13%, respectively. Earnings estimates for both years have been unchanged over the past seven days.
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Can Bank of America Sustain Revenue Growth on Stronger Loans & NII?
Key Takeaways
Bank of America’s (BAC - Free Report) revenue outlook remains supported by broadening loan growth and sustained net interest income (NII) momentum. At the Barclays Global Financial Services Conference earlier this month, management said that commercial loans are growing at a mid- to upper-single-digit pace, while consumer loans are increasing at a low- to mid-single-digit rate. This provides a solid base for continued growth in interest-earning assets.
Commercial lending remains the main driver. Growth has expanded beyond capital-markets-related financing into core middle-market, large-corporate and small-business lending, with management expecting a pace similar to the high-single-digit growth seen in the previous quarter.
This loan momentum is expected to continue to support BAC’s NII trajectory. NII saw a 6.7% compound annual growth rate (CAGR) over 2020-2025, with the uptrend continuing in the first six months of 2026. At the conference, management indicated that NII growth should be 7-8% this year, supported by loan and deposit growth, and the continued repricing of fixed-rate assets.
The interest rate environment could provide an additional tailwind. Management said that higher rates (the Fed raised its target range by 25 basis points to 3.75-4.00% on Sept. 16) would further support NII and expressed greater confidence in its medium-term 2.3% net interest margin (NIM) target. Notably, Bank of America’s roughly $2-trillion deposit base also provides a funding advantage, although a sharper rise in rates could eventually temper loan demand and financing activity.
Beyond NII, fee revenues remain mixed but offer support. BAC expects investment banking (IB) fees of $1.6-$1.8 billion in third-quarter 2026, below $2 billion in third-quarter 2025. Trading revenues are expected to be flat year over year, while wealth management and AUM fees are expected to rise 10-15% year over year. With NII accounting for nearly 60% of total revenues, sustained commercial loan growth, favorable asset repricing and continued deposit strength should keep BAC’s core revenue engine moving higher. While capital markets volatility may create some quarter-to-quarter unevenness, the current loan and NII trends suggest that the bank has a solid foundation to sustain revenue growth.
Image Source: Zacks Investment Research
Let Us Take a Look at the Revenue Trend of BAC’s Peers
Bank of America’s peers like JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) are also witnessing solid growth in revenues.
JPMorgan’s revenues rose roughly 19% year over year in the first half of 2026 to $107.2 billion, supported by strong markets and IB activity, higher NII, and fee growth. The Zacks Consensus Estimate for JPMorgan’s 2026 revenues is pegged at $206.6 billion, suggesting a year-over-year rise of 13.2%.
Morgan Stanley’s revenues increased 21% year over year to $41.93 billion in the first half of 2026, driven by robust IB, trading and wealth-management performance. The Zacks Consensus Estimate for Morgan Stanley’s 2026 revenues is $81.9 billion, indicating a rise of 15.9%.
BAC’s Price Performance, Valuation & Estimates
In the past year, shares of Bank of America have gained 8% compared with the industry’s 11.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, BAC trades at a trailing 12-month price-to-tangible book ratio of 1.97, well below the industry average of 3.16.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BAC’s 2026 and 2027 earnings indicates year-over-year growth rates of 22.6% and 13%, respectively. Earnings estimates for both years have been unchanged over the past seven days.
Image Source: Zacks Investment Research
Currently, Bank of America carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.