Bank of America is set to report fourth-quarter results on Wednesday, marking the second major Wall Street lender to kick off earnings season. Analysts expect core trading revenue to rise by approximately 12% year-over-year, driven by strong fixed-income performance in December. Net interest income (NII) is projected to hold steady near $15 billion, with the bank’s deposit mix shifting toward higher-yield balances. Investment banking fees are forecast to increase 8% compared with Q4 2024, reflecting elevated M&A advisory activity in the technology and energy sectors. Investors will also scrutinize management’s 2026 outlook, as CEO Brian Moynihan is anticipated to provide updated targets for return on tangible common equity (ROTCE) and efficiency ratio improvements amid ongoing cost-reduction initiatives.

Over the weekend, Bank of America shares declined roughly 1.5% after President Trump proposed capping credit card interest rates at 10% for one year. BAC holds about 70 million active consumer credit card accounts, generating nearly $6 billion in annual fee and interest income. Executives caution that a 10% cap could reduce revenue by an estimated $1.2 billion next year and force the bank to tighten lending standards for subprime borrowers. Management is expected to address these regulatory risks during the earnings call, outlining potential mitigants such as repricing deposit products, accelerating fee diversification, and optimizing credit risk models to preserve net interest margin.