Bank of America reported a 3.2% quarter-over-quarter increase in total loans during Q4, with the bulk of the expansion coming from its commercial banking division. Commercial and industrial loans rose 5.8%, boosted by stronger demand for middle-market financing and higher utilization of revolving credit facilities. Meanwhile, consumer loan balances were essentially flat, reflecting ongoing borrower caution in unsecured categories such as credit cards and auto loans. Mortgage originations increased modestly, supported by refinancings of shorter-duration home loans, but remained below year-ago levels as home-buyer traffic stayed subdued.

The shift toward commercial lending helped lift net interest income by an estimated 4.5% sequentially, but deposit costs climbed 15 basis points, narrowing the net interest margin by roughly five basis points. Provision for credit losses fell by $200 million compared with Q3, reflecting stable asset quality and improved reserve coverage. Non-interest income was flat, as gains from capital markets activities offset lower debt-issuance fees. Management indicated that sustained commercial loan growth, coupled with disciplined expense controls, should support mid-single-digit earnings per share growth in 2026, assuming funding costs plateau and consumer credit trends remain cautious.