Bank of America reported a strong third quarter profit of $8.5 billion, boosted by a 43% jump in investment banking fees to $2 billion. Mega mergers and acquisitions globally fueled this surge, reflecting renewed corporate confidence and making it one of the most lucrative quarters for the bank's advisory business.
Bank of America (BofA) delivered impressive third-quarter results for 2025, driven primarily by its thriving investment banking segment. The bank posted a net income of $8.5 billion (or $1.06 per share), marking a significant increase from $6.9 billion a year earlier. This strong showing outpaced expectations and reflects a revival in corporate deal-making worldwide.
BofA’s investment banking fees soared by 43% year-on-year to $2 billion—far surpassing the previously forecasted 10-15% growth. The rise is attributable to advising on mega-deals that saw global mergers and acquisitions hit $1.26 trillion in the quarter, representing a 40% jump from the previous year and the second-highest third-quarter total on record.
This surge underscores the renewed confidence among corporations to pursue large-scale mergers, acquisitions, and equity offerings. The broader dealmaking environment remains buoyant, with global transactions topping $3 trillion in the first nine months of 2025—the highest level since 2021. BofA, along with its Wall Street peers, has capitalized on this momentum to boost advisory revenues and reinforce its market leadership.
Aside from investment banking, the bank reported steady performance in its lending and deposit businesses, supported by a resilient U.S. economy. The strong results are further proof of the banking sector's ability to adapt and thrive amid fluctuating market conditions and geopolitical uncertainties.
Major Takeaways
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Net income: Surged to $8.5 billion in Q3 2025, up from $6.9 billion year-on-year.
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Earnings per share: Reported $1.06 versus 81 cents in the comparable period last year.
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Investment banking fees: Increased 43% to $2 billion, driven by mega mergers and advisory deals.
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Global M&A activity: Hit $1.26 trillion in the quarter, reflecting strong corporate confidence.
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Market context: Deal volumes are the highest since the pandemic peak in 2021.
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Portfolio strength: Balanced growth across lending, deposits, and investment banking supports earnings resilience.
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Outlook: Continued strong pipeline of deals expected to sustain momentum into 2026.
Sources: Reuters; Investing.com; Bloomberg; Bank of America Q3 2025 Financial