Bank of America (BAC) is witnessing steady revenue prospects driven by loan growth and an improving net interest income (NII). At the Barclays Global Financial Services Conference earlier this month, management reported that commercial loans are increasing at a mid- to upper-single-digit rate, while consumer loans are growing at a low- to mid-single-digit rate. This trend is anticipated to bolster the bank's interest-earning assets.
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Management noted that commercial lending remains a key growth area, expanding beyond capital-markets financing into core middle-market, large-corporate, and small-business loans. Expecting growth similar to the high-single-digit rate from the previous quarter, this momentum is projected to support BAC's NII trajectory.
NII has experienced a 6.7% compound annual growth rate (CAGR) from 2020 to 2025, with this uptrend continuing into the first half of 2026. Management suggested that NII growth should range from 7% to 8% for this year, fueled by both loan and deposit growth as well as the ongoing repricing of fixed-rate assets.
The interest rate environment offers potential support, with the Federal Reserve recently increasing its target range by 25 basis points to 3.75-4.00% on September 16. This change is expected to enhance NII, and management expressed growing confidence in reaching their medium-term net interest margin (NIM) target of 2.3%. Moreover, Bank of America benefits from a substantial $2-trillion deposit base, although a rapid increase in rates could limit loan demand and financing activities.
Additionally, while fee revenues show mixed performance, they still contribute positively. BAC anticipates investment banking fees between $1.6 billion and $1.8 billion in third-quarter 2026, a decrease from $2 billion in the same quarter of 2025. Trading revenues are expected to remain stable year over year, while wealth management and assets under management (AUM) fees are predicted to increase by 10-15% year over year. Given that NII constitutes nearly 60% of its total revenues, sustained growth in commercial loans, favorable asset repricing, and solid deposit levels should support BAC's revenue growth.
Although capital market volatility may lead to some fluctuations quarterly, current loan and NII trends indicate that Bank of America is well-positioned for sustained revenue growth.
Examining the broader financial landscape, peers like JPMorgan and Morgan Stanley are also reporting strong revenue growth. JPMorgan saw revenues rise approximately 19% year over year in the first half of 2026 to $107.2 billion, driven by strong market performance and increased NII and fee growth. The Zacks Consensus Estimate projects JPMorgan's 2026 revenues at $206.6 billion, representing a 13.2% year-over-year increase.
Morgan Stanley experienced a 21% year-over-year revenue increase to $41.93 billion in the first half of 2026 due to solid investment banking, trading, and wealth management performance. The Zacks Consensus Estimate for Morgan Stanley's 2026 revenues stands at $81.9 billion, indicating a rise of 15.9%.