$BAC shares gained 2% on July 25, 2025, after announcing a 7.5% dividend hike to $0.28 per share and a $10 billion buyback program, signaling robust capital strength post-Q2 earnings.
The bank reported Q2 EPS of $0.89, beating estimates of $0.82, with revenue of $25.4 billion, up 2% year-over-year, driven by strong loan growth and investment banking fees.
However, net interest income fell 3% to $13.9 billion due to higher deposit costs, reflecting competitive pressures on bank margins. $BAC’s asset quality remains solid, with a 1.1% non-performing loan ratio, outperforming peers like $INDUSIND.
The stock, up 6% year-to-date, trades at a forward P/E of 12, below the sector’s 14. Analysts rate $BAC a “strong buy,” with a $52 target. $AAPL’s partnership with $BAC for Apple Card financing ties this to Consumer Tech.
Investors should monitor Q3 guidance for tariff impacts and Fed rate cut signals, as higher rates could further squeeze margins. $BAC’s diversified operations and capital returns make it a stable pick for bank stock investors amid economic uncertainty.
