good morning. Bank of America posted its highest earnings in nearly 20 years, and chief financial officer Alastair Borthwick said AI was becoming key to the bank’s performance.
The bank on Wednesday reported first-quarter 2026 net income of $8.6 billion and earnings per share of $1.11, an increase of 25%, the highest level in nearly 20 years. In a conference call with the media, Borthwick noted that AI is becoming an increasingly important driver and highlighted new internal tools for financial advisors.
The Meeting Journey tool helps advisors prepare for meetings with clients by gathering important information. He said BofA has about 18,000 financial advisors across its wealth management platforms serving millions of clients. He explained that before meeting with a client, advisors must regularly update a wide range of information, including the client’s history, recent activity, and CIO guidance.
The tool searches for and integrates client relationship insights and recent activity into ready-to-use preparation materials, and with client consent, acts as an AI note-taker during virtual meetings. It also summarizes the meeting decisions and next steps based on those notes. The goal is to reduce manual preparation time and allow free advisors to focus on customer relationships.
“These efforts are paying off,” Borthwick said, pointing to record first-quarter sales and improved cost management.
In the past, preparing for a meeting required retrieving data from multiple systems. Much of that work is now automated, he said. “It’s not necessarily a judgment; it may be a human judgment,” Borthwick added. The bank invests about $13.5 billion a year in technology, about $4 billion of which is in new initiatives such as AI.
More broadly, BofA’s strong quarter was driven by several factors, including:
-Net interest income increased 9% to $15.9 billion as loan and deposit growth accelerated.
– A record 30% rise in the stock market pushed trading revenue to $6.3 billion, the highest level in nearly 15 years.
– Investment banking fees rose 21% to $1.8 billion due to a strong M&A market.
– Asset management fees increased 15% to $4.2 billion.
—The company maintained cost discipline and improved its efficiency rate by 170 basis points to 61%, thanks to productivity improvements such as AI.
With revenues exceeding expenses, BofA achieved operating leverage of 2.9% for the third consecutive quarter. Morningstar on Tuesday raised its fair value estimate for Bank of America to $65 per share from $58.
Borthwick said the bank’s data shows the resilience of U.S. consumers amid continued uncertainty around geopolitics, interest rates and credit. Borthwick said the unemployment rate remains at about 4.3%, supporting spending, while the recent increase in gasoline spending has not changed the picture significantly. “You can see that in the quality of our assets,” he said.
Cheryl estrada
sheryl.estrada@fortune.com
leader board
Christopher Filiagi He has been appointed interim CFO of CoreBridge Financial, Inc. (NYSE: CRBG), effective April 24. Filiaggi, who has been CoreBridge’s chief accounting officer since 2023, will serve as interim CFO while the company prepares for its planned merger with Equitable Holdings. This appointment follows the previously announced move of CFO Elias Habaeb. Prior to his current role, Mr. Filiaggi held finance leadership positions at Corebridge and American International Group, Inc.
Sean McCabe He was appointed chief financial officer (CFO) of entertainment technology company Cineverse (NASDAQ: CNVS), effective April 20. He replaces Mark Lindsay, who the firm is in discussions to move into a senior financial consulting role. Mr. McCabe previously served as Vice President and Corporate Controller at Cineverse in 2023 and 2024. He returns from ad tech company Freestar, where he led the accounting and finance teams focused on mergers and acquisitions, finance, and capital structure optimization. Prior to Freestar and Cineverse, McCabe held controller positions at Jukin Media, Fulgent Genetics, and National Grid.
big deal
BridgeWise’s firstThe state of AI for wealth in 2026” report found that 78% of respondents around the world use AI tools for investment-related queries, with nearly half (45.7%) emerging as power users who “always” or “often” consult AI when seeking investment information. This global study is based on 2,100 respondents from 19 countries.
The report also introduces the Global Wealth AI Optimism Index. It is a unique benchmark that evaluates 19 countries across four weighted pillars: Adoption (frequency of use of AI), Confidence (belief in AI’s accuracy), Edge (perceived competitive advantage in using AI for investing), and Momentum (intention to replace traditional investment research with AI).
even deeper
“From Wool Sneakers to GPUs: Explaining Allbirds’ Desperate AI Pivot and 600% Stock Rise” luck Article by Phil Waba.
On Wednesday, sustainable footwear brand Allbirds announced it had secured $50 million in funding and changed its name to NewBird AI to transform itself into a technology company with a “long-term vision to become a fully integrated GPU-as-a-Service (GPUaaS) and AI-native cloud solutions provider,” Waba wrote. Details can be found here.
overheard
“When people understand how their work adds value to the company, they act like owners: innovate, solve problems, and stay.”
—Vicente Reynal, Chairman, President and CEO of Ingersoll Rand, wrote: luck Opinion article titled “How Employee Ownership Drives Over 8x Growth in Company Value.”
