Bank of America (BAC) Q3 FY25 earnings call

Earnings call· Sep 2025 (Q3 FY25)· Financials· Oct 15, 2025

Source: earnings call transcript

Bank of America delivered a strong third quarter, driven by robust organic growth across its diversified business model, leading to significant operating leverage and improved profitability. The company saw record net interest income and strong fee-based business performance, with continued investments in technology and client experience translating into solid financial results. Management expressed confidence in its trajectory and future opportunities.

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BAC operating KPIs by quarter

BAC operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	This call Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Common equity tier 1 ratio (CET1)	11.9% We also ended with $201 billion of regulatory CET1 capital and a CET1 ratio of 11.9%, leaving us nearly 115 basis points of excess capital as we begin 2025. Source: earnings call transcript	11.8% Our CET1 level increased to $201 billion and the CET1 ratio is 11.8%. Source: earnings call transcript	11.5% And looking at regulatory capital, our CET1 level remained stable at $201 billion and the ratio is 11.5%. Source: earnings call transcript	11.6% Looking at regulatory capital, our CET1 level increased modestly to $203 billion, while the risk-weighted assets were relatively flat, and that drove our CET1 ratio higher to 11.6%. Source: earnings call transcript	—	11.2% From a regulatory perspective, the CET1 capital ratio declined 14 basis points to 11.2%, and that decline primarily reflects the capital return to shareholders above earnings generation as well as balance sheet growth and mix change in support of our clients, and our ratio remains well above regulatory requirements. Source: earnings call transcript	11.2% We ended the quarter with common equity Tier 1 capital of nearly $202 billion and a common equity Tier 1 ratio of 11.2%. Source: earnings call transcript	10.9% CET1 was 10.9%, down roughly 35 basis points from Q2, primarily reflecting higher funded and unfunded loans, and a $3 billion reduction in CET1 capital. Source: earnings call transcript	-0.3 pt
Return on tangible common equity (ROTCE)	13% And lastly, returns in the fourth quarter were 80 basis points of ROA and 13% return on tangible common equity. Source: earnings call transcript	14% We produced an 89 basis points return on assets and a 14% return on tangible common equity in the first quarter. Source: earnings call transcript	13.4% We produced a return on assets of 83 basis points and return on tangible common equity of 13.4% in the second quarter. Source: earnings call transcript	—	—	16% And importantly, we generated return on tangible common equity, ROTCE of 16%. Source: earnings call transcript	17% We generated return on tangible common equity of 17%. Source: earnings call transcript	—	+1 pt
Employees	~213K As far as head count goes, we've managed our head count carefully, and we've held it fairly flat through the 4 quarters of 2024 at around 213,000 people. Source: earnings call transcript	—	212K Today, we have 212,000. Source: earnings call transcript	213K So looking at the past 3 years, we've been able to lower our headcount from a peak of 217,000 to 213,000 now. Source: earnings call transcript	—	—	200K+ In addition, we added a slide on AI at Slide 20, which shows how our over 200,000 teammates are actively using AI-enabled capabilities across our company. Source: earnings call transcript	209K So -- but this company is success is due to the 209,000 people out there working every day, and they'll be a great leader for it next and the Board will make the decision when the time is there. Source: earnings call transcript	—
Efficiency ratio Consumer Banking	—	—	51% The efficiency ratio improved more than 200 basis points in the last 12 months to 51% in the quarter. Source: earnings call transcript	—	51% Business was also managed well for shareholders as we grew expense less than 2%, allowing us to improve our efficiency ratio to 51% and deliver nearly 350 basis points of operating leverage. Source: earnings call transcript	53% That resulted in over 500 basis points of operating leverage and a 53% efficiency ratio. Source: earnings call transcript	—	50% Business produced a 50% efficiency ratio and a 31% return on allocated capital. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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