Bank of America Corp.'s stock has retreated in late February 2026, closing at $50.41 on February 24 after a 1.29% decline, as investors weigh broader economic uncertainty, potential tariff impacts, and recent sector pressures against the bank's solid fourth-quarter 2025 performance and ongoing shareholder returns.

Bank of America Shares 4% Rise in Q2 After Announcing Net Interest Income Rebound Imminent
Bank of America

The shares, trading on the New York Stock Exchange under ticker BAC, have fallen from recent highs near $57.55 in early January 2026, marking a roughly 12% pullback from the 52-week peak. Year-to-date, the stock is down approximately 4-5% in 2026, underperforming the broader S&P 500 amid concerns over slowing loan growth, interest rate dynamics, and trade policy risks. Volume on February 24 exceeded 53 million shares, reflecting heightened activity during the downturn.

The slide accelerated on February 23 with a 3.75% drop to $51.07, driven by reports of economic headwinds and tariff-related commentary affecting financial stocks. Analysts noted Bank of America's sensitivity to consumer spending trends and potential trade frictions, which could pressure net interest margins and fee income in coming quarters.

Despite the near-term weakness, Bank of America's fundamentals remain robust following its January 14, 2026, fourth-quarter and full-year 2025 earnings release. The bank reported net income of $7.6 billion for Q4, up 12% year-over-year, with diluted earnings per share of $0.98—beating analyst expectations of $0.96. Revenue, net of interest expense, reached $28.4 billion to $28.53 billion, surpassing forecasts of around $27.94 billion, fueled by a 9.7-10% rise in net interest income to $15.92 billion and gains in equities trading, asset management fees, and other noninterest income.

Full-year 2025 results showed continued momentum, with record revenue in several segments and disciplined expense management delivering operating leverage. Return on tangible common equity stood at 14.0% in Q4, reflecting efficient capital use. Management highlighted average loan growth of 8% and deposit increases of 3%, alongside 330 basis points of operating leverage in the quarter.

CEO Brian Moynihan emphasized the bank's diversified franchise across consumer banking, wealth management, global banking, and markets, positioning it well for 2026. The company guided for continued net interest income stability or modest growth, supported by organic client expansion and technological investments.

Shareholder-friendly actions continue. On February 3, 2026, the board declared a regular quarterly cash dividend of $0.28 per common share, payable March 27 to holders of record March 6—an annualized $1.12 with a yield around 2.2%. The payout ratio remains sustainable at about 29%. Separately, Bank of America announced the full redemption of its Series DD preferred stock and related depositary shares, effective March 10, 2026, at $1,000 per depositary share, plus accrued dividends.

Recent strategic moves include expanding its private credit platform with up to $25 billion in commitments from its balance sheet, aiming to capture higher-yielding opportunities in direct lending amid demand from institutional clients. The initiative could enhance fee income and diversify revenue streams beyond traditional banking.

Wall Street remains predominantly bullish. Consensus among 18-28 analysts rates BAC a Moderate Buy to Buy, with average 12-month price targets ranging from $57.58 to $62.52—implying 14-24% upside from current levels. High targets reach $71, low ends around $43.50-$56. Firms like JPMorgan maintain Buy ratings with targets near $61.50, citing resilient profitability and capital strength.

Risks include potential slowdowns in consumer and commercial lending if economic conditions soften, regulatory scrutiny on large banks, and sensitivity to interest rate changes. Tariff proposals could indirectly affect clients in trade-exposed sectors, pressuring credit quality.

The next earnings report, for first-quarter 2026, is scheduled for April 15, 2026. Investors will focus on net interest income trends, expense discipline, and any updates to full-year guidance amid evolving macro conditions.

Bank of America, one of the largest U.S. financial institutions with a vast consumer and commercial footprint, continues to demonstrate resilience through diversified operations and strong capital levels. While near-term volatility persists from economic and policy uncertainties, its track record of beating estimates, returning capital, and adapting to market shifts supports optimism among analysts for longer-term performance.

As the banking sector navigates a transitional environment, Bank of America's scale, digital investments, and client relationships position it to capitalize on recovery opportunities while maintaining shareholder value.