Bank of America Q3 Earnings Show Tech and Fintech Momentum

Bank of America posts $8.5 billion in Q3 net income as AI investments, digital adoption, and fintech M&A strengthen its franchise and boost operating leverage to 5.6%

Key Takeaways

• Net income rose 23% year-over-year to $8.5 billion, with diluted EPS up 31% to $1.06, supported by record net interest income of $15.2 billion and investment banking fees surging 43% to $2.0 billion amid a rebound in deal activity.
• Digital milestones included 175 million Erica interactions—up 5% year-over-year—and Zelle transactions climbing 15% to 459 million, contributing to an efficiency ratio of 62% through targeted technology investments.
• Q3 achievements in technology M&A featured advisory on mega deals and participation in Oura’s $250 million revolving credit facility, part of the smart ring maker’s $875 million Series E at an $11 billion valuation, underscoring the bank’s role in fintech funding.

Introduction

Bank of America Corporation reported third-quarter results on October 15, 2025, that reflected solid execution across core operations, with a particular emphasis on investment banking resurgence and technology-driven efficiencies. Net income increased 23% to $8.5 billion from the prior year, revenue grew 11% to $28.1 billion—driven by record net interest income and robust noninterest income—and diluted earnings per share advanced 31% to $1.06, achieving a 15.4% return on tangible common equity. Average deposits expanded 4% to $1.99 trillion, and loans rose 9% to $1.15 trillion, signaling sustained client demand.

Noninterest expenses rose 5% to $17.3 billion, allocated to AI enhancements and digital capabilities that bolstered client engagement and operational controls, resulting in an efficiency ratio of 62%. This quarter’s performance built on prior periods’ momentum, including a 10% revenue increase in Q2, while investment banking fees—up from $1.4 billion in Q3 2024—highlighted the bank’s strengthened position in technology and fintech transactions.

Key Developments

Financial results demonstrated consistent growth, with all segments delivering higher revenue and net income compared to the prior year. Net interest income set a record at $15.2 billion, up 9%, reflecting deposit growth and asset repricing stability, while noninterest revenue reached $12.9 billion—elevated by investment banking fees of $2.0 billion (up 43%, excluding self-led deals) and sales and trading of $5.4 billion (up 9%), with equities contributing $2.3 billion (up 14%).

In Consumer Banking, net income climbed 26% to $3.4 billion on $11.2 billion in revenue (up 7%), fueled by $947 billion in average deposits (up 1%) and $320 billion in loans (up 2%); card spending hit $245 billion (up 6%), and provisions for credit losses eased 23% to $1.0 billion, maintaining a 1.39% net charge-off rate. Global Wealth and Investment Management generated $1.3 billion in net income on $6.3 billion in revenue (up 10%), with client balances expanding 11% to $4.6 trillion and $24 billion in new AUM; pretax margins held steady at 27%. Global Banking added $2.1 billion in net income, revenue up 7% to $6.2 billion, supported by 15% deposit growth to $632 billion average and 12% treasury services expansion, alongside 6% middle-market loan increases.

These outcomes extended Q2 trends, where net income reached $7 billion and investment banking fees grew 32%, positioning Q3 as a high point in fee generation. Chair and CEO Brian Moynihan noted: “Strong net income growth drove third quarter diluted earnings per share up 31% from last year… As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%.” CFO Alastair Borthwick credited “investments in technology, talent and client experiences” for the leverage. Fourth-quarter net interest income is guided at $15.6-15.7 billion, up 8% from last year’s close.

Market Impact

Q3 results aligned with a broader U.S. banking recovery, where investment banking activity rebounded with 49 deals announced through mid-September, up from 39 in Q2. Bank of America’s 5.6% operating leverage reinforced a common equity tier 1 ratio of 11.6% (up 6 basis points), funding $7.4 billion in shareholder returns via $5.3 billion in repurchases and $2.1 billion in dividends, including an 8% hike. Credit metrics improved, with provisions down 16% to $1.3 billion, net charge-offs at 0.47% (down 11%), and nonperforming loans at 0.46%.

Digital progress amplified these gains: 41.3 million active mobile users (up 5%), 66% of consumer sales digital (from 54%), and Zelle at 459 million transactions ($143 billion volume, up 15% and 18%). Wealth management saw 86% digital adoption with 3.4 million Erica interactions, while global banking recorded 6% CashPro app payment growth to $299 billion, including 25,000 Erica sessions and 42% digital bond orders (up from 33%). Building on Q2’s 170 million Erica interactions, Q3’s 79% household digital activity enhanced cost controls.

Strategic Insights

Investment banking’s Q3 surge—fees up 43% to $2.0 billion, capturing 136 basis points of market share—capitalized on a deals rebound, with the bank advising on mega transactions across technology and fintech. This followed the October 2024 merger of its 50-person fintech team into the 200-person technology group, led by global M&A chairman Kevin Brunner, to target payments-software intersections. The March 2025 hire of Chris Norman from Wells Fargo as head of Americas technology M&A further sharpened focus, enabling advisory on Q3’s uptick in tech deals amid AI momentum.

A highlight was Bank of America’s participation in Oura’s September 2025 financing: as part of a consortium with JPMorgan Chase, Goldman Sachs, and Barclays, it provided a $250 million revolving credit facility alongside Oura’s $875 million Series E, valuing the health wearable maker at $11 billion—up from $5.2 billion in late 2024. This Q3 milestone exemplified the bank’s 342 investments in fintech ecosystems, including prior commitments to Fnality (blockchain) and Propel Finance (lending tech), fostering scale in health data and payments. Such activities align with industry surveys showing 43% of executives prioritizing technology scale, though integration challenges persist.

The bank’s $4 billion 2025 AI allocation—within a $13 billion tech budget—underpinned these efforts, following Q2’s rollout of adaptive models for fraud detection.

Data and Forward Outlook

Erica’s Q3 interactions totaled 175 million (up 5%), with 59 million proactive alerts enabling 72% digital check deposits in wealth management and a 1.4x Zelle advantage over cash/checks—pushing cumulative interactions past 3 billion since launch. The September “AskGPS” GenAI payments assistant launch promises tens of millions in client time savings, extending Q2’s digital bond order gains to 42%. Moynihan highlighted “continued organic growth” across units.

A 100-basis-point rate cut could trim net interest income by $2.2 billion over 12 months, offset by AI efficiencies and sustained M&A inflows, with Bain forecasting tripled banking deal interest. Preferred Rewards grew to 11.3 million members (up 1%).

Conclusion

Bank of America’s Q3—marked by $8.5 billion in net income, record net interest income, and a 43% investment banking fee surge—showcased accelerated performance, amplified by technology integrations and key fintech financings like Oura’s $11 billion valuation milestone.

These results, extending prior quarters’ gains, position the bank to leverage AI and M&A for ongoing efficiency and growth. For stakeholders, Q3 underscores a clear path: disciplined execution in earnings and strategic tech plays drives enduring value.