US Stock Market | BofA projects solid first-quarter growth across key businesses

Bank of America expects solid revenue growth across key business segments in the first quarter, supported by heightened market volatility and continued strength in consumer spending, according to remarks by its Co-President Dean Athanasia at a financial conference in New York.

The bank anticipates net interest income (NII) to increase by at least 7% in the quarter, while investment banking fees are projected to rise around 10%. Global markets revenue is also expected to expand at a low double-digit pace, marking the firm’s 16th straight quarter of year-on-year growth in the segment, Reuters reported.

Market turbulence across asset classes has helped sustain trading activity and client engagement, providing a boost to the bank’s capital markets and wealth management businesses. According to Reuters, executives said these segments are generating healthy revenue as clients adjust portfolios amid shifting economic and geopolitical conditions.


Financial stocks recovered on Tuesday after suffering losses earlier in the week when rising oil prices and geopolitical tensions rattled global markets. The rebound came as investors reassessed the outlook for banks and broader equities.

The S&P 500 Bank Index rose about 1.4% during Tuesday’s session, clawing back some of the declines recorded since the start of the conflict involving the U.S., Israel and Iran, Reuters reported.

Bank of America, the second-largest U.S. lender by assets, has previously projected annual NII growth of roughly 5% to 7% for fiscal 2026. Net interest income reflects the spread between what banks earn on loans and investments and what they pay depositors.

U.S. lenders have benefited in recent quarters from the gradual repricing of older fixed-rate assets into higher-yielding loans and securities. At the same time, interest rate cuts introduced by the Federal Reserve in late 2025 have helped reduce deposit costs, improving profitability across the sector, Reuters reported.

Regulatory developments could further influence the outlook for large banks. The finalization of new rules for global systemically important banks (GSIBs), often referred to as the Basel “endgame,” may reduce the regulatory capital requirements for some institutions, Reuters reported.

U.S. regulators are expected to release draft proposals in the coming weeks outlining these long-awaited rules. Industry executives believe the changes could potentially lower the amount of capital banks must hold against potential losses, freeing up billions of dollars that could be used for lending, investment or shareholder returns.

Beyond traditional banking activities, technology continues to play an expanding role within the institution. Bank of America’s virtual assistant, Erica, now handles roughly 40% of inquiries from corporate clients, while around 90% of employees rely on it for internal support and help-desk functions, according to Reuters