Financial services giant Bank of America (NYSE: BAC) met Wall Street’s revenue expectations in Q2 CY2025, with sales up 4.4% year on year to $26.5 billion. Its GAAP profit of $0.89 per share was 3.7% above analysts’ consensus estimates.
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Bank of America (BAC) Q2 CY2025 Highlights:
- Net Interest Income: $14.67 billion vs analyst estimates of $14.83 billion (7.1% year-on-year growth, 1.1% miss)
- Net Interest Margin: 1.9% vs analyst estimates of 2% (flat year on year, 6 bps miss)
- Revenue: $26.5 billion vs analyst estimates of $26.52 billion (4.4% year-on-year growth, in line)
- Efficiency Ratio: 64.9% vs analyst estimates of 64.5% (0.5 percentage point miss)
- EPS (GAAP): $0.89 vs analyst estimates of $0.86 (3.7% beat)
- Market Capitalization: $347.6 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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Regrettably, Bank of America’s revenue grew at a tepid 3% compounded annual growth rate over the last five years. This fell short of our benchmarks 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 2% 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 grew its revenue by 4.4% year on year, and its $26.5 billion of revenue was in line with Wall Street’s estimates.
Net interest income made up 53.7% 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.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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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 explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
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 8.9% annually over the last two years from $23.37 to $27.71 per share.
Over the next 12 months, Consensus estimates call for Bank of America’s TBVPS to grow by 6% to $29.38, mediocre growth rate.
Key Takeaways from Bank of America’s Q2 Results
It was good to see Bank of America narrowly top analysts’ tangible book value per share expectations this quarter. On the other hand, its net interest income slightly missed and its EPS was in line with Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded up 1.3% to $46.70 immediately following the results.
So should you invest in Bank of America 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.
