BAC · Earnings call · 2026Q3T · Full report

Interest Rate Outlook

BANK OF AMERICA CORP /DE/ · 2026-10-14 · Importance 20 · Surprise 24

Management said the third quarter’s rate move and resulting volatility temporarily reduced client transactional activity, but expects fourth-quarter markets performance to benefit as conditions moderated in the first two weeks. The CFO noted that one rate hike had occurred and three additional hikes were possible, which could pressure liability-sensitive global-markets net interest income in 2027. Management expects core banking-book net interest income to grow faster than the companywide 8% outlook because the consolidated figure includes potentially lower markets NII.

Key facts

• The NII outlook assumes three 25-basis-point rate increases through June of 2027, in December 2026 and March and June of next year.
• Rates went up 85 basis points this quarter.