Bank of America reported its first quarter 2026 financial results on April 15, with its Global Markets division posting its strongest sales and trading performance in a decade. Equities delivered what CFO Alastair Borthwick called the desk’s “best quarter ever”.
Sales and trading revenue excluding DVA came in at $6.3 billion, up 12% year-over-year, within total Global Markets revenue ex-DVA of $7.0 billion, up 7% year-over-year.
The quarter marks the 16th consecutive period of year-over-year sales and trading revenue growth for the division.
Equities led at $2.8 billion, up 30% year-over-year. On the earnings call, Borthwick said the gain reflected “increased client activity and capital extended to the business for growth,” driven by “client financing activity, particularly in Asia, as well as strong trading performance in derivatives.”
FICC came in at $3.5 billion, with Borthwick describing results as “modestly higher,” with strength in commodities “partially offset by lower revenue in FX and interest rate products.”
Despite what Borthwick called “a volatile trading environment heightened by geopolitical uncertainty,” the desk recorded no trading loss days during the quarter.
Average VaR fell to $47 million from $50 million in Q4 2025 and well below the $91 million posted in Q1 2025, a decline in measured risk alongside higher revenue. Average assets grew 14% year-over-year to $1.1 trillion, which Borthwick said reflected “higher inventory levels and strong client balances”.
Speaking on the earnings call, CEO Brian Moynihan said the performance was broad-based: “Markets, wealth and investment banking all show good momentum. Client activity remained healthy,” with revenues across those businesses growing at double-digit rates compared to Q1 2025.
He described the quarter as one driven by “balanced results across our businesses,” with every segment growing revenue, earnings, loans and deposits year-over-year.
Net income for Global Markets was $2.0 billion, up modestly from Q1 2025, though Borthwick noted the prior-year quarter included “roughly $230 million in gains related to leveraged finance positions” that did not repeat. Return on allocated capital was 15%.
On expenses, Global Markets non-interest expense rose 15% year-over-year to $4.4 billion. Borthwick said on the call the increase reflected “higher activity levels, increased people costs and our continued investment in this business.” The segment efficiency ratio recovered sharply to 61% from 74% in Q4 2025 from a previous quarter.
The investment banking component within Global Markets contributed $0.8 billion in fees. Across the broader franchise, total Corporation investment banking fees excluding self-led deals reached $1.8 billion, up 21% year-over-year, led by M&A with equity capital markets also contributing. Borthwick noted the year-over-year comparison was “particularly notable” given Q1 2025 had included gains on leveraged finance positions that did not recur.
On the balance sheet, Borthwick said the firm maintains “one of the lowest cost funding profiles among the large US banks”, supported by deposit mix and pricing discipline, with the total rate paid on deposits declining 16 basis points to 1.47% in the quarter. Firm-wide liquidity stood at over $960 billion, “well above regulatory requirements”, providing the capacity to support trading inventory and client facilitation activity.
On regulation, Borthwick said on the call that proposed changes to the GSIB surcharge are expected to “more than offset the Basel III endgame impact,” adding that if both frameworks are adopted as proposed, “Bank of America is likely to see some reduction in overall capital requirements relative to the current regime in future periods”.
