Bank of America shares declined between 1% and 2% in the session following President Trump’s weekend proposal to cap credit-card interest rates at 10%. Executives at BAC estimate that such a cap could reduce card yield revenue by roughly $1.8 billion annually, while potentially forcing a tightening of lending standards that would exclude more than 2 million lower-income customers from card access. The company’s management has warned that narrower spreads on revolving balances would weigh on net interest income and could necessitate an increase in annual fees to offset margin compression.

Bank of America is set to report fourth-quarter results on Wednesday, marking the midpoint of the big-bank earnings season. Analysts expect the bank to post trading revenue of approximately $3.4 billion, essentially flat with the prior quarter, while net interest income is forecast at $12.2 billion. Investment banking fees are projected to climb 8% sequentially, driven by higher equity underwriting and advisory mandates. Investors will key in on credit quality metrics—particularly the reserve build for loans—as well as any commentary on the trajectory of deposit costs.

Looking ahead to 2026, shareholders are seeking clarity on BAC’s long-term targets for return on tangible common equity and efficiency ratio improvements. Management has previously indicated aspirations to exceed a 12% tangible ROE and drive the efficiency ratio below 55% by year-end. Coupled with accelerating loan-growth trends—total loans grew 5.5% year-over-year in Q3—and sustained capital markets momentum, investors remain cautiously optimistic that Bank of America can leverage its diversified footprint to deliver mid-teens total shareholder returns over the next 12 months.