Bank of America

Consumer banking delivered $3.3 billion Q4 net income, up 17% year-over-year with 350 basis points of operating leverage. Efficiency ratio at 51%. Full year revenue of $44 billion with $12 billion net income, up 14%, and 28% return on allocated capital.

Net charge-offs declined to $1.3 billion with NCO ratio falling to 44 basis points, down 10 basis points year-over-year. Credit card net charge ratio improved to 3.4%. Management cited through-cycle NCO rate of 50-55 basis points at Investor Day.

Technology spend of $13 billion plus with $4 billion in initiatives. AI coding tools saved equivalent of 2,000 people with 30% coding efficiency. Microsoft 365 CoPilot rolled out to 200,000 teammates. Headcount expected to decline in 2026. Erica and digital engagement continued to grow across businesses.

Reiterated Investor Day guidance of 5-7% NII growth for 2026 based on 2 expected rate cuts. Q1 NII expected up 7% from Q1 2025. Operating leverage target of approximately 200 basis points. ROTCE path to 16% lower range within 8 quarters, then toward 18%.