Bank of America (BAC) recorded a 24.1% increase in share prices for the year 2025, following a strong 30.5% gain in 2024. Despite this performance, it lagged behind competitors such as JPMorgan (JPM), which rose 34.4%, and Citigroup (C), which surged 65.7% over the same period. The Federal Reserve’s three interest rate cuts last year, lowering rates to between 3.5% and 3.75%, are expected to pressure BAC’s net interest income (NII), although growth in loans and deposits may help mitigate this impact.
As of September 30, 2025, BAC maintained average global liquidity sources totaling $961 billion and announced an 8% increase in its dividend to 28 cents per share. Furthermore, the bank has launched a $40 billion share repurchase program, setting a target of buying back $4.5 billion in shares quarterly. BAC aims for a 5-7% year-over-year growth in NII for 2026, driven by rising loan demand and strategic expansions in financial centers, which number 3,650 nationwide.
The Zacks Consensus Estimate for BAC’s earnings in 2025 remains at $3.80, with a projected increase to $4.33 for 2026. The bank’s stock is currently trading at a price-to-tangible book ratio of 2.01, below the industry average of 3.18, indicating a potential value opportunity for investors.
