In the third quarter, IMS Investment Management Services Ltd. sold 25,965 shares of Bank of America, reducing its position by 48.7% to 27,317 shares, worth approximately $1.41 million at the time of filing with the SEC. Contrasting this reduction, Brighton Jones LLC boosted its holdings by 30.0% in the fourth quarter to 108,872 shares, representing about $4.79 million in value. First Financial Bankshares Inc. expanded its stake by 14.7% during the first quarter to 1,663,914 shares, valued at roughly $69.44 million, while Quarry LP initiated a new position worth $512,000. Maverick Capital Ltd. also opened a significant new position valued at about $152.1 million, underscoring shifting sentiment among large institutional holders. Overall, institutional ownership of BAC stands at 70.71%.

Bank of America reported third-quarter earnings per share of $1.06, beating consensus estimates of $0.93 by 13 cents, driven by revenue of $27.05 billion—up 10.8% year-over-year. The bank maintained a net margin of 15.70% and delivered a return on equity of 10.76%. Following these results, the board declared a quarterly dividend of $0.28 per share, marking a 12.0% increase year-over-year and reflecting a payout ratio of 30.5%. Analysts’ consensus forecast for the full year projects EPS of $3.70, underscoring confidence in continued profit growth.

Aditya Bhave, Head of Macro Strategy at Bank of America, forecast that U.S. GDP growth will moderate to approximately 1.8% in 2026, supported by easing fiscal drag and resilient consumer spending. He predicts core inflation cooling to near 2.4% by year-end, driven by stabilization in shelter costs and supply chain normalization. Bhave also expects the Federal Reserve to begin cutting its policy rate in the second half of 2026, lowering borrowing costs for corporate and retail borrowers, which could spur loan demand and credit growth in the bank’s lending portfolios.

‘Fast Money’ traders expressed bullish views on large U.S. banks for 2026, citing margin expansion from a steeper yield curve and sustained fee income from advisory and wealth management services. They highlighted that improved risk-adjusted returns on new loan originations and continued balance sheet optimization should bolster sector profitability. However, participants cautioned that credit performance will be a key watchpoint, as default rates in commercial real estate and retail portfolios could influence bank earnings trajectories in the coming year.