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Call sheet · Q2'26

Bank of America (BAC)

Q2'26 earnings call · held July 14, 2026 · compared with the Q1'26 call · management-credibility review
5/12
Disclosure score
1 high, 3 medium, 3 low flags
Financial quality
Bottom line
The sleeper story is BAC's AI theater: 400,000 daily prompts generating zero quantifiable ROI while management added a victory lap slide about deployment that reveals only 30% of initiatives are actually live. Yes, the headline 34% EPS growth and 660bps operating leverage look fantastic, but it's built on a September rate hike the market says won't happen and mysteriously defensive new disclosure about their Global Markets loan book nobody asked for. The binding constraint isn't technology or rates; it's that their core deposit franchise is barely growing (0.6% sequentially) despite all the digital innovation rhetoric. Most revealing quote: 'I'm not going to give you exactly because it never quite works out that way' on AI returns. My view changes if they show core deposit growth above 2% sequentially or quantify even $100M of AI-driven savings.

The 30-second version

  • AI productivity explosion: 400K daily prompts but zero revenue attribution
  • NII guide raised to 'upper end' of 6-8% on phantom rate hike nobody believes will happen
  • Global Markets loan disclosure suddenly appears after 'no material losses' claim

What changed this quarter

MetricQ1'26Q2'26Change
Revenue$30.3B (up 7% YoY)$31.6B (up 15% YoY)+100 bps YoY acceleration
EPS$1.11 (up 25% YoY)$1.21 (up 34% YoY)+900 bps EPS growth acceleration
Net Income$8.6B$9.1B (up 27% YoY)Sequential acceleration
NII (FTE basis)$15.9B (up 9% YoY)$16.2B (up 9% YoY)Growth rate flat despite rate tailwind
Operating Leverage290 bps660 bps+370 bps surge
Efficiency Ratio61%59%200 bps improvement
ROTCE16%17%100 bps expansion
Investment Banking Fees$1.8B (up 21% YoY)$2.1B (up 50% YoY)+29pp YoY growth acceleration
Global Markets Revenue$7.0B (up 7% YoY)$7.2B (up 33% YoY)+26pp surge in growth rate
Consumer Deposits (avg)$951B$957BJust 0.6% sequential growth

Accountability tracked

6 new promises made5 narrative shifts flagged5 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
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Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

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