Financial services giant Bank of America (NYSE: BAC) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 6.5% year on year to $28.37 billion. Its GAAP profit of $0.98 per share was 2.2% above analysts’ consensus estimates.
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Bank of America (BAC) Q4 CY2025 Highlights:
- Net Interest Income: $15.75 billion vs analyst estimates of $15.68 billion (9.7% year-on-year growth, in line)
- Net Interest Margin: 2.1% vs analyst estimates of 2% (4.1 basis point beat)
- Revenue: $28.37 billion vs analyst estimates of $27.59 billion (6.5% year-on-year growth, 2.8% beat)
- Efficiency Ratio: 61.5% vs analyst estimates of 62.7% (127.7 basis point beat)
- EPS (GAAP): $0.98 vs analyst estimates of $0.96 (2.2% beat)
- Tangible Book Value per Share: $28.73 vs analyst estimates of $28.66 (7.5% year-on-year growth, in line)
- Market Capitalization: $398.3 billion
Company Overview
Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, Bank of America’s revenue grew at a sluggish 5.7% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Bank of America’s annualized revenue growth of 6% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Bank of America reported year-on-year revenue growth of 6.5%, and its $28.37 billion of revenue exceeded Wall Street’s estimates by 2.8%.
Net interest income made up 53% of the company’s total revenue during the last five years, meaning Bank of America’s growth drivers strike a balance between lending and non-lending activities.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Bank of America’s TBVPS grew at a solid 6.7% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 8.1% annually over the last two years from $24.60 to $28.73 per share.
Over the next 12 months, Consensus estimates call for Bank of America’s TBVPS to grow by 6.3% to $30.55, lousy growth rate.
Key Takeaways from Bank of America’s Q4 Results
We enjoyed seeing Bank of America beat analysts’ revenue expectations this quarter. With higher net interest margin and a better-than-expected efficiency ratio, EPS also exceeded expectations. Zooming out, we think this was a solid quarter. The stock traded up 1.3% to $55.06 immediately after reporting.
Is Bank of America an attractive investment opportunity right now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
