Bank of America (BofA) concludes 2025 in a historically strong position after successfully navigating the Federal Reserve’s annual stress tests. This performance directly enabled a record-breaking capital return program for shareholders. The positive regulatory outcome included a reduced Stress Capital Buffer (SCB), highlighting the bank's improved financial health since the 2008 crisis.
BofA's robust capital position is supported by strong metrics reported in late 2025. The bank reported a net income of $8.5 billion for the third quarter. Furthermore, its Common Equity Tier 1 (CET1) ratio reached 11.6%, significantly exceeding the regulatory minimum.
Wall Street has responded with bullish sentiment to BofA's financial strength and clarity on capital returns. Analysts from major firms raised their price targets for BAC into the $60–$65 range, reflecting confidence in the bank’s continued performance.