Bank of America Q3 Results: Net Profit Rises 23% to $8.5 Billion; Shares Jump 5% in Pre-Market Trade

Bank of America (BofA) started the Wall Street earnings season positively with the announcement of a hefty profit of $8.5 billion for the third quarter, which was significantly lifted by strong investment banking activity and increased interest income. Over 5% rise in the stock price during pre-market hours indicated that investors were confident about the bank’s performance and the strong results.

Earnings Snapshot

For the quarter ended September 2025, BofA reported:

Net profit: $8.5 billion (vs. $6.9 billion last year)

Earnings per share (EPS): $1.06 (vs. $0.81 YoY)

The results comfortably beat market estimates, as renewed corporate confidence boosted dealmaking and advisory revenues.

Investment Banking Strength

The bank’s investment banking revenue soared 43% YoY to $2 billion, thanks to a surge in mergers and acquisitions (M&A) activity. According to Dealogic, global megadeals hit $1.26 trillion in Q3 — the second-highest third-quarter total on record.

In total, global dealmaking topped $3 trillion in the first nine months of 2025 — the best performance since 2021, according to Mergermarket.

Interest Income and Outlook

• Bank of America’s net interest income (NII) — its core lending income — rose 9% YoY to $15.2 billion, driven by strong loan and deposit growth.
• The bank now expects Q4 NII to come in between $15.6–15.7 billion, around 8% higher year-on-year.

CEO Brian Moynihan attributed the strong performance to “robust loan and deposit growth” and “effective balance sheet positioning.” He added that the Federal Reserve’s recent 25-basis-point rate cut could further stimulate borrowing and sustain income momentum.

Stock Performance

In pre-market trading, Bank of America stocks saw a 5% rise, reaching $52.68, which is higher than the previous day’s closing price of $50.09. Even though the bank’s stock price was lower than the prices of its competitors at the beginning of the year, it has still managed to provide a 13.1% gain so far this year and a stunning 106% return in the last five years.

Analyst Takeaway

Analysts say the results underline BofA’s resilience amid shifting interest rate cycles. Strong capital markets activity, steady loan growth, and balance sheet discipline have positioned the lender well heading into 2026.