Following President Trump’s weekend proposal to cap credit card interest rates at 10% for one year, Bank of America shares declined by approximately 1.5% on Monday. Executives from the lender have warned that such a cap would force issuers to tighten lending standards, potentially leaving millions of customers without access to revolving credit. Internal risk models at Bank of America indicate that a 10% ceiling would cut credit card receivables by as much as 20%, translating into an estimated $8 billion reduction in outstanding balances and reducing funding for small-business lines of credit tied to its card platform.

Bank of America is scheduled to report fourth-quarter results on Wednesday, following JPMorgan’s Tuesday release. Analysts surveyed by StreetConsensus expect net interest income to come in near $14.2 billion—flat sequentially but up 5% year-over-year—driven by stable loan yields on a $950 billion loan book. Trading revenue is forecast at $2.1 billion, while investment banking fees could rise 8% to around $1.3 billion. Investors will pay close attention to the firm’s outlook for 2026, particularly projections for expense growth (expected to be capped at 3%) and return on tangible common equity, which management targets in the mid-teens percentage range.

Bank of America has benefited from an industry-wide pickup in loan origination, with domestic consumer balances rising over 6% year-to-date and commercial loan growth accelerating to an annualized pace of 7%. The bank’s capital markets segment has also seen positive momentum, with fixed-income trading volumes up 12% in the fourth quarter compared with the prior period. With a Common Equity Tier 1 ratio of 11.9%—well above regulatory requirements—and disciplined expense management holding noninterest expense growth below 2%, Bank of America is positioned to capitalize on a permissive regulatory environment and higher interest rate spreads into 2026.