JPMorgan Chase set a high bar for bank earnings season on Tuesday, posting a record-shattering $57 billion in annual net income. Now the spotlight shifts to Bank of America and Wells Fargo, which report fourth-quarter 2025 results Wednesday morning at 7:00 a.m. Eastern time.

The reports will reveal how two of America's largest banks are navigating a complex environment: interest rates that remain elevated but are expected to fall, a dealmaking market that's finally recovering, and regulatory pressures that continue to reshape the industry.

Bank of America: The Net Interest Income Story

Analysts expect Bank of America to report earnings per share between $0.95 and $0.96—a potential 17% jump from the same period last year. Revenue projections range from $27.3 billion to $27.7 billion.

The key metric to watch is net interest income (NII), which measures the difference between what banks earn on loans and what they pay depositors. While JPMorgan guided for essentially flat NII in 2026, Bank of America has projected 5-7% growth—a significant divergence that reflects its different liability structure and deposit mix.

CEO Brian Moynihan has positioned Bank of America as a beneficiary of stabilizing interest rates. The bank's significant bond portfolio, which generated paper losses when rates spiked in 2022-2023, has been steadily recovering. Management has emphasized that as older, lower-yielding securities mature and are replaced with higher-yielding ones, NII should improve even without rate cuts.

Wells Fargo: Life After the Asset Cap

Wells Fargo enters 2026 with a distinction no other major bank can claim: 2025 was its first full year without the Federal Reserve's asset cap, a restriction imposed in 2018 following the bank's fake accounts scandal.

Analysts expect Wells Fargo to report EPS of approximately $1.68, compared to $1.43 in the year-ago quarter. The bank has signaled flat NII for 2026, but investors will focus on how management plans to deploy its newfound flexibility.

CEO Charlie Scharf has spent five years restructuring Wells Fargo's operations, cutting costs, and attempting to restore the bank's reputation. The removal of the asset cap frees the bank to pursue growth opportunities in commercial lending, wealth management, and other areas where it was previously constrained.

"Wells Fargo's first year without regulatory constraints will test whether the turnaround has truly taken hold or whether growth has atrophied during years of restriction."

— Morgan Stanley Banking Research

The Regulatory Wild Card

Both banks face uncertainty from the Trump administration's evolving approach to financial regulation. President Trump's suggestion of capping credit card interest rates at 10% has already pressured bank stocks, and JPMorgan CEO Jamie Dimon warned Tuesday that such policies could "backfire" and restrict credit access for consumers who need it most.

Bank of America and Wells Fargo generate substantial revenue from credit card operations, making them vulnerable to rate cap proposals. Investors will parse management commentary for any guidance on how the banks might adapt if such restrictions materialize.

Looking Ahead to 2026

Beyond the quarterly numbers, both banks are expected to provide detailed guidance for 2026. Key questions include:

  • Loan growth: Will commercial and consumer lending accelerate as economic uncertainty fades?
  • Expense management: How much room remains for cost cuts after years of efficiency programs?
  • Capital returns: With strong capital positions, will either bank announce expanded buyback programs?
  • Investment banking: Can both banks capture share of the recovering M&A market?

What the Numbers Mean for Investors

Bank stocks had an exceptional 2025, with the major banks averaging gains of around 40%. That performance has left valuations elevated by historical standards, meaning Wednesday's results—and more importantly, the 2026 outlook—will need to justify continued optimism.

JPMorgan's strong report and relatively cautious guidance sent its shares down 3.5% on Tuesday, a reminder that beating expectations may not be enough in the current environment. Bank of America and Wells Fargo face similar pressure to deliver not just solid results but credible paths to continued growth.

The reports drop Wednesday at 7:00 a.m. Eastern, with earnings calls scheduled for later that morning. For investors in financial stocks, it's the week's most important data point after Tuesday's softer-than-expected CPI report.