**Beta Finch Podcast Script - Schwab Q4 2025 Earnings**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we cut through the noise to bring you the market-moving insights that matter. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Charles Schwab's Q4 2025 earnings call, and wow - this was a record-breaking quarter for the brokerage giant.

**ALEX:** Before we jump in, just a quick note - this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, let's talk numbers because Schwab really delivered some impressive results here.

**ALEX:** They sure did. Full-year 2025 was nothing short of spectacular. Total net revenues hit a record $23.9 billion - that's up 22% year-over-year. But here's the kicker - adjusted earnings per share jumped 50% to $4.87, which actually exceeded their own guidance range.

**JORDAN:** That earnings growth is remarkable, especially when you consider the challenging environment brokerages have faced. What drove this performance?

**ALEX:** It's really a three-pronged story. First, they attracted $519 billion in core net new assets - a 42% increase over 2024. Second, client engagement was through the roof with 1.9 billion trades executed. And third, their diversification strategy is paying off big time.

**JORDAN:** Let's unpack that diversification piece because I think that's what makes Schwab's story so compelling right now. They're not just a traditional brokerage anymore.

**ALEX:** Exactly. Their managed investing net flows grew 36% year-over-year, hitting nearly $70 billion. Bank lending balances reached an all-time high of $58 billion. They're essentially becoming a one-stop financial shop, and clients are responding. CEO Rick Wurster mentioned that only 5% of retail households currently use their managed investing solutions, but 31% say they're willing to pay for advice.

**JORDAN:** That's a massive opportunity gap. And speaking of opportunities, their lending business caught my attention. Pledged asset line balances nearly doubled since 2023, but penetration rates are still really low - only 9% of ultra-high net worth retail clients have a PAL.

**ALEX:** Right, and that low penetration is actually good news for future growth. CFO Mike Verdeschi highlighted they've streamlined the PAL experience to about a day for most clients, with nearly three-quarters completed in less than 24 hours. With spreads north of 100 basis points, it's a win-win for clients and shareholders.

**JORDAN:** Now let's talk about their 2026 outlook because the guidance was pretty bullish. They're projecting total revenue growth of 9.5% to 10.5%, with adjusted earnings potentially reaching $5.70 to $5.80 per share.

**ALEX:** That would represent upper-teens earnings growth, which is impressive. What I found interesting was their assumption of a slight pullback in trading volumes to 7.4 million daily average trades, down from the record levels they saw in 2025. They're being conservative there, which I appreciate.

**JORDAN:** Speaking of trading, there was a fascinating discussion about prediction markets during the Q&A. Rick Wurster was pretty clear - they're open to financial prediction markets if there's client demand, but they're steering clear of sports betting.

**ALEX:** I thought his comment was telling: "Less than 5% of clients that put money into gambling apps leave with more money than they put in." That's a stark contrast to Schwab clients hitting all-time record wealth levels. It shows they're staying true to their mission of helping clients build long-term wealth.

**JORDAN:** Another strategic move that caught my eye was their acquisition of Forge, which is expected to close soon. This gives them access to private company investing, es

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# Beta Finch Podcast Script: Wells Fargo Q4 2025 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is Jordan. Today we're diving into Wells Fargo's fourth quarter 2025 results, and folks, this is a big one. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN**: That's right, Alex. And what a transformation story this is becoming. Wells Fargo just reported some pretty impressive numbers - net income hit $5.4 billion for the quarter, up 6% year-over-year, with diluted earnings per share at $1.62, up 13%. But the real story here is what's happening behind these numbers.

**ALEX**: Absolutely. Let's start with the elephant in the room that's actually turned into a huge positive - the removal of that Federal Reserve asset cap. Jordan, this has completely unleashed Wells Fargo's ability to grow their balance sheet again.

**JORDAN**: It's like taking the parking brake off a race car, Alex. CEO Charlie Scharf said their assets grew 11% year-over-year, with broad-based loan growth and higher trading assets. They're finally able to use their balance sheet to support customers properly again. And get this - they've had 22 consecutive quarters of headcount reductions, cutting over 25% since Q2 2020, while simultaneously growing the business.

**ALEX**: That's remarkable efficiency. Now, let's talk about their ambitious targets. They're now shooting for a 17-18% return on tangible common equity in the medium term. That's up from their current 15%. But when analysts pressed Scharf for a timeline, he basically said "look, we don't control interest rates or the economy."

**JORDAN**: Yeah, that was one of the more interesting Q&A moments. Steven Chubak from Wolfe Research pushed back, saying other banks do provide timelines. But Scharf held firm - he's clearly learned from overpromising in the past. His approach is essentially "judge us by our results, not our promises."

**ALEX**: Smart approach given their history. Now let's dive into the business segments. Their consumer business is really starting to show momentum. Credit card accounts opened nearly 3 million new accounts in 2025, up 21% year-over-year. Auto business returned to growth with 19% balance growth. Jordan, what stood out to you here?

**JORDAN**: What I found fascinating is how methodical they're being about this growth. Scharf specifically mentioned they're not just chasing growth for growth's sake - they want profitable growth. In auto, they became the preferred financing provider for Volkswagen and Audi. But he emphasized they're focused on "making sure we have the right level of profitability, not just growth."

**ALEX**: That's a mature approach. On the commercial side, they hired 185 coverage bankers over the last two years, with over 60% hired in 2025. They're seeing early success with higher client acquisition and loan growth. But here's where it gets interesting - they're really pushing into investment banking.

**JORDAN**: Right, they've set a goal to be a top 5 U.S. investment bank. They moved up to 8th in M&A rankings in 2025 from 12th in 2024. And Scharf mentioned they're entering 2026 with their deal pipeline "meaningfully greater than it has been at any point in the last 5 years." That's a bold statement.

**ALEX**: Now, let's talk numbers for 2026. They're guiding for net interest income of around $50 billion, up from $47.5 billion in 2025. But here's where it gets complex - they're breaking out their markets business separately now.

**JORDAN**: This is actually really important for investors to understand. They expect markets net interest income to grow to about $2 billion in 2026, but this growth will be partially offset by lower noninterest income. It's essentially a shift in how reve

This episode includes AI-generated content.

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we decode the latest quarterly results and turn corporate speak into conversations you can actually follow. I'm Alex.

**JORDAN**: And I'm Jordan. Before we dive into today's episode, I want to remind everyone that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Thanks Jordan. Today we're breaking down Morgan Stanley's Q4 2025 results, and wow - these numbers are pretty impressive across the board. Jordan, what jumped out at you first from these results?

**JORDAN**: Alex, this was really a record-breaking quarter and year for Morgan Stanley. We're talking about $70.6 billion in full-year revenue - that's a record. EPS hit $10.21 for the year, and their return on tangible common equity came in at 21.6%. But what really caught my attention was their total client assets reaching $9.3 trillion. That's just a massive number.

**ALEX**: That's huge. And when you break it down by business segments, it seems like they had strength pretty much everywhere. Their institutional securities business - that's their investment banking and trading operations - hit record full-year revenues of $33.1 billion. Their wealth management business, which has really been their crown jewel, delivered record revenues of $31.8 billion with margins of 29%.

**JORDAN**: Right, and that wealth management story is particularly compelling. They had net new assets of $356 billion for the year - that's like adding a mid-sized asset manager every single year. What I found interesting was CEO Ted Pick's commentary about their "funnel" working. They're seeing about $100 billion migrating from their workplace and E*TRADE channels to their financial advisors, which is higher-margin business.

**ALEX**: That's a great point about the funnel. It sounds like their strategy of having multiple entry points - whether someone starts with E*TRADE for self-directed trading, gets stock options through their workplace program, or comes directly to a financial advisor - is really paying off. Now Jordan, one thing that surprised me was their decision NOT to raise their financial targets, despite clearly exceeding many of them. What's your read on that?

**JORDAN**: This was fascinating, Alex. Multiple analysts pressed them on this during the Q&A. Ted Pick was pretty candid - he basically said they don't want to "chase the dragon" by constantly raising targets just because they hit them. His philosophy seems to be about proving they can compound earnings consistently through different market cycles, not just when everything's going well.

**ALEX**: That's actually pretty refreshing in a world where companies often feel pressure to constantly raise guidance. Pick mentioned wanting to achieve "higher lows" during tougher periods rather than just reaching for higher peaks when times are good.

**JORDAN**: Exactly. And they're sitting on a lot of excess capital - over 300 basis points above their required levels. Pick was asked about potential M&A or returning more capital to shareholders, but he emphasized they want to keep the bar high for acquisitions. They've done four major deals in recent years and know how much work integration takes.

**ALEX**: Speaking of capital allocation, they did return $4.6 billion to shareholders through buybacks in 2025 and raised their dividend by 7.5 cents to $1 per share. But it sounds like they're being pretty disciplined about not getting too aggressive.

**JORDAN**: Right. And looking forward, there are some interesting growth drivers. Pick talked about being in the "third inning" of a capital markets recovery, driven by what he calls the "equitization of global markets" - basically more companies and assets going public and trading. They're also investing he

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**BETA FINCH PODCAST SCRIPT**

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and I'm here with my co-host Jordan to dive into JPMorgan Chase's Q4 2025 earnings call. Jordan, this was quite the eventful call - Jamie Dimon and Jeremy Barnum had a lot to unpack.

**JORDAN**: They sure did, Alex. But before we dive in, I need to mention something important. This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Absolutely crucial reminder, Jordan. Now, let's talk numbers. JPMorgan reported some solid Q4 results - net income of $13 billion, EPS of $4.63, and an 18% return on tangible common equity. Revenue came in at $46.8 billion, up 7% year-over-year. What caught your eye first?

**JORDAN**: What jumped out immediately was that $2.2 billion reserve build related to the Apple Card acquisition. That's a massive number that shows JPMorgan is serious about this partnership. Strip that out, and the underlying business performance looks even stronger. The Consumer and Community Banking division would have shown $5.3 billion in net income without that reserve hit.

**ALEX**: The Apple Card deal is fascinating. Jeremy Barnum called it a "win-win-win" for all three parties - JPMorgan, Apple, and Goldman Sachs, who's exiting the business. But Jordan, what really struck me was the timeline - they're saying it'll take two full years to integrate this portfolio. Why so long?

**JORDAN**: That's the really interesting technical aspect here. Jamie Dimon explained that Apple built a completely different tech stack integrated into iOS - it's not just a traditional credit card they can quickly fold into their existing systems. They literally have to rebuild Apple's technology architecture within JPMorgan's infrastructure. It's going to cost significant money, but Dimon seemed genuinely excited about what they'll learn from Apple's customer service standards and user experience approach.

**ALEX**: Speaking of big numbers, let's talk about that $9 billion expense increase guidance for 2026. Total adjusted expenses are expected to hit $105 billion. Mike Mayo from Wells Fargo really pressed them on this during the Q&A, and Jamie Dimon's response was pretty telling.

**JORDAN**: Dimon was almost defiant about it, in a good way. He essentially said "we see huge opportunities, and we're not going to try to meet some expense target and then ten years from now have you asking us how JPMorgan got left behind." They're investing in rural branches, international expansion, better payment systems, AI across the company, and what Dimon called their "SRI initiative" which could be far bigger than expected.

**ALEX**: The guidance for 2026 shows they're expecting net interest income excluding markets of around $95 billion, with total NII at $103 billion. They're also projecting a card net charge-off rate of approximately 3.4%. But Jordan, there was this elephant in the room that dominated much of the Q&A...

**JORDAN**: You're talking about the credit card interest rate cap proposal. This came up right after President Trump's social media post about potentially capping credit card APRs. The timing was incredible - literally happening as earnings calls were taking place across the banking sector.

**ALEX**: Jeremy Barnum and Jamie Dimon were pretty direct about this. Barnum said if price controls are imposed, "people will lose access to credit on a very, very extensive and broad basis, especially the people who need it the most." Dimon added that it would be "very dramatic" and force them to adjust their entire business model.

**JORDAN**: What's important for listeners to understand is that the credit card business is already extremely competitive. When you impose price controls on a competitive market, companies don'

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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and joining me as always is my co-host Jordan. Today we're diving into Robinhood's Q4 2025 earnings call - and folks, this was quite the presentation from CEO Vlad Tenev and new CFO Shiv Verma.

**JORDAN:** Before we jump in though, Alex, we need to be crystal clear with our listeners - this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX:** Absolutely right, Jordan. Now, let's talk numbers because Robinhood delivered some impressive results. Revenue hit $4.5 billion for the full year - that's 52% growth year-over-year. Jordan, what jumped out at you from these financials?

**JORDAN:** The scale of growth is remarkable, Alex. But what's even more impressive is the profitability story. Adjusted EBITDA reached $2.5 billion with a 56% margin - that's a new high for them. And they delivered incremental EBITDA margins above 70% for the third straight year. This isn't just a growth story anymore; it's a profitable growth story.

**ALEX:** And speaking of growth, their platform assets nearly hit $324 billion - up almost 70% year-over-year. Vlad mentioned they had positive net transfers from all major brokerage competitors for eight quarters straight. That's quite a streak.

**JORDAN:** That competitive positioning really shows in their market share gains. They're claiming to be number one in options industry-wide now, based on the latest reports. But Alex, what I found fascinating was how diversified this business has become. They now have 11 business lines generating over $100 million in annualized revenue each.

**ALEX:** Right, and prediction markets was the standout story. Vlad called it their "fastest growing business in history" with over $12 billion in contracts traded in 2025. But here's what's interesting - they're already seeing diversification beyond sports. NBA contracts actually surpassed NFL in January trading activity.

**JORDAN:** That diversification theme extends to their international expansion too. They're up to 750,000 customers outside the US, and Vlad made a bold prediction - he thinks they'll look back and realize they underestimated how big international could be. The Bitstamp acquisition seems to be paying off with volumes doubling since the June close.

**ALEX:** Now let's talk about their 2026 outlook because this is where things get really ambitious. Shiv laid out expense guidance of $2.6 to $2.725 billion - that's 18% growth at the midpoint, which is actually below their 2025 growth rate of 22%.

**JORDAN:** What I love about their expense breakdown, Alex, is the strategic focus. About half of that 18% growth - roughly 10 percentage points - is going into new and scaling businesses. We're talking about the Gold Card, banking, AI initiatives, tokenization, and continued international expansion. They're not just growing; they're diversifying their revenue streams.

**ALEX:** Speaking of new initiatives, Robinhood Banking caught my attention. They rolled out to 25,000+ customers who brought in over $400 million in balances, and get this - over 50% enrolled in direct deposit. For a new financial product, that's incredible engagement.

**JORDAN:** And the Gold Card business is scaling rapidly - up 5x in 2025 to 600,000 customers with over $10 billion in annualized spend. They're planning to more than double that to over a million customers this year. The 3% rewards seem to be resonating.

**ALEX:** But Jordan, what really stood out to me was their AI strategy. Vlad mentioned they're seeing nine-figure savings from AI implementation in 2025 alone. Over 75% of customer support cases are now handled by AI, including complex cases that previously required licensed professionals.

**JORDAN:** Th

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# Beta Finch Podcast Script: Goldman Sachs Q4 2025 Earnings

**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown where we dive deep into the numbers that move markets. I'm Alex, and joining me as always is my co-host Jordan. Today we're unpacking Goldman Sachs' fourth quarter 2025 results, and wow, what a quarter this was.

Before we jump in, I need to share our standard disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

Jordan, Goldman absolutely crushed it this quarter - $14.01 earnings per share, 16% ROE. Walk us through these headline numbers.

**JORDAN**: Alex, these results are genuinely impressive. For the full year, they delivered $51.32 in earnings per share - that's a 27% increase year-over-year. Their return on equity hit 15% for the full year and 16% return on tangible equity. But here's what really caught my attention - since their 2020 investor day, they've increased firm-wide revenues by roughly 60% and grown EPS by 144%. That's execution at scale.

**ALEX**: And they're clearly feeling confident about their position. CEO David Solomon was pretty bullish on the call, talking about how they've maintained their number one M&A adviser position for 23 consecutive years. That's remarkable staying power. But Jordan, there was some significant news buried in these results - what's the story with Apple Card?

**JORDAN**: Right, so Goldman announced they're transitioning the Apple Card portfolio. This had a net positive impact of $0.46 to EPS this quarter because while they took a $2.3 billion revenue reduction, they released $2.5 billion in reserves. Solomon called this one of their "final steps to narrow strategic focus." They're clearly trying to get out of the consumer lending business and refocus on their core strengths.

**ALEX**: Speaking of strategic focus, they laid out some pretty ambitious targets for their asset and wealth management business. What stood out to you there?

**JORDAN**: This was huge, Alex. They're increasing their pretax margin target for asset and wealth management to 30%, which they say will drive high-teen returns in that segment. They now have $3.6 trillion in assets under supervision, and they're targeting 5% long-term fee-based net inflows annually in wealth management. Solomon emphasized they see this as a massive growth opportunity - their current market share in ultra-high-net-worth is only mid-single digits despite being the leader.

**ALEX**: The investment banking outlook seems particularly interesting. They mentioned their backlog is at a four-year high. What's driving that optimism?

**JORDAN**: Solomon was really bullish here. He talked about several catalysts - corporate focus on scale and innovation, massive capital flows into AI, and increased sponsor activity. Get this - sponsors are sitting on about $1 trillion of dry powder and have roughly $4 trillion of value across their portfolio companies. Goldman's betting big that 2026 will see significant M&A activity. Solomon even suggested that in a base case scenario for M&A volumes, we could approach 2021 levels.

**ALEX**: Now, one thing that came up repeatedly was this "One Goldman Sachs 3.0" initiative powered by AI. This sounds pretty transformative, but Solomon was notably cautious about providing specific metrics. What's your read on this?

**JORDAN**: Yeah, that was interesting. Solomon emphasized this isn't about transforming the whole firm - it's about driving productivity and efficiency. They've identified six specific processes to attack with AI-driven redesign. He was pretty honest that he hoped to provide more transparency on this call but wasn't ready yet. The goal is to free up capacity to invest in growth areas like wealth management. It's a smart approach - use AI to become more eff

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**ALEX**: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and I'm here with my co-host Jordan to dive into Citigroup's Q4 2025 earnings call. Jordan, this was quite the quarter for Citi - and notably, CFO Mark Mason's final earnings call before stepping down.

**JORDAN**: That's right, Alex. But before we get into the numbers, I need to share our disclaimer: This podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**ALEX**: Thanks, Jordan. Now, let's talk about these results because Citi really delivered some impressive numbers. They reported adjusted EPS of $1.81 for the quarter and a full-year adjusted return on tangible common equity of 8.8% - that's a 180 basis point improvement year-over-year when you adjust for their Russia and Banamex impacts.

**JORDAN**: What really caught my attention was the revenue story. Adjusted revenues were up 7% for the full year to $86.6 billion - that's their strongest growth in over a decade, Alex. And here's the kicker: every single one of their five business segments hit record revenues. Services up 8%, Markets delivering record performance even beating their stellar 2020 numbers, and Banking had their best M&A revenue year in Citi's history.

**ALEX**: That M&A performance is particularly noteworthy. CEO Jane Fraser mentioned they had a role in 15 of the 25 largest investment banking transactions of the year, advising big names like Boeing, Pfizer, and Johnson & Johnson. Their investment banking wallet share increased 30 basis points year-over-year. Jordan, what's your take on the efficiency story here?

**JORDAN**: The efficiency gains are really the underlying theme of this transformation story, Alex. They delivered positive operating leverage for the second straight year - not just at the firm level but in every single business. Their efficiency ratio improved to 63% on an adjusted basis. Fraser was particularly excited about their AI adoption, with colleagues in 84 countries using their proprietary AI tools over 21 million times, with adoption now above 70%.

**ALEX**: Speaking of transformation, there was some significant regulatory news. The OCC terminated article 17 of their consent order in December, and Fraser mentioned that over 80% of their transformation programs are now at or near target state. This feels like a major milestone for Citi's multi-year remediation efforts.

**JORDAN**: Absolutely. And Fraser was pretty confident about completing the remaining work, though she was careful to note that timing ultimately lies with the regulators. The focus is now shifting from just risk and controls to using AI and automation to improve client experience while reducing expenses. They're starting with over 50 of their largest and most complex processes.

**ALEX**: Let's talk about the forward-looking guidance because this is where it gets interesting for investors. CFO Mark Mason provided some pretty specific expectations for 2026. They're guiding for net interest income excluding markets to grow 5-6%, driven by volume growth in cards and wealth, plus deposit growth in services and wealth.

**JORDAN**: Right, and they're targeting an efficiency ratio of around 60% for 2026 - that's moving from their previous target of "below 60%" to "around 60%," giving them flexibility to invest in growth. Mason was clear that 2026 is focused on delivering that 10-11% return on tangible common equity they've been targeting, but he emphasized that's just a waypoint, not the destination.

**ALEX**: One area that stood out in the Q&A was the discussion around capital returns. They repurchased over $13 billion in shares during 2025, including $4.5 billion in Q4. With a CET1 ratio of 13.2% - about 160 basis points above their regulatory requirement - they're targeting a 100 basis point

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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown where we turn complex financial reports into clear conversations. I'm Alex.

**JORDAN:** And I'm Jordan. Today we're diving into Blackstone's Q4 2025 earnings – and wow, what a quarter this was for the private equity giant.

**ALEX:** Before we jump in, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Absolutely. Now Alex, let's talk about these numbers because Blackstone just delivered what they're calling their best results in their 40-year history.

**ALEX:** The headline number that caught my eye – distributable earnings of $1.75 per share for the quarter, capping off a record year where DE increased 20% to $5.57 per share. That's $7.1 billion in distributable earnings for the full year. But Jordan, what really stood out to you?

**JORDAN:** The sheer scale of capital flows. They pulled in $71 billion in inflows just in Q4 – that's the highest level in three and a half years. For the full year, we're talking about $240 billion in fundraising. To put that in perspective, their assets under management hit nearly $1.3 trillion, up 13% year over year.

**ALEX:** That's an almost incomprehensible amount of money. And CEO Jonathan Gray made an interesting point about their market position – according to analyst research, Blackstone has an estimated 50% share of all private wealth revenue across major alternative firms.

**JORDAN:** Which brings us to one of their biggest success stories – the private wealth channel. Their fundraising there jumped 53% year over year to $43 billion. But what's driving this?

**ALEX:** Performance, performance, performance. Their BCRED product – that's their private credit offering for individual investors – delivered 10% net returns annually since inception five years ago. Their private equity flagship BXP has generated 17% annualized returns since launching just two years ago.

**JORDAN:** Let's talk about the elephant in the room though – real estate. This has been a challenging sector, but there are some interesting developments. While real estate values only appreciated about 1.5% for the full year, they're seeing positive signs.

**ALEX:** Right, construction starts have fallen to their lowest level in over 12 years in both logistics and multifamily – their two largest real estate sectors. Less supply typically means better pricing power down the road.

**JORDAN:** And they're not just sitting on the sidelines. They've deployed over $50 billion in real estate since what they call the "cycle trough" two years ago, including a Q4 commitment to privatize Alexander and Baldwin.

**ALEX:** Now let's talk about what might be the most exciting part of this call – the deal environment is finally opening up. Jonathan Gray compared it to 2013-2014, saying it feels like markets are coming out of hibernation.

**JORDAN:** The Medline IPO was a perfect example. This was a $7.2 billion IPO – the largest since 2021 and the largest sponsor-backed IPO in history. Shares popped over 40% on the first day. Gray mentioned they have "one of the largest IPO pipelines in our history."

**ALEX:** What did you make of their commentary on artificial intelligence? They seem to be positioning this as a generational investment opportunity.

**JORDAN:** It's fascinating how they're approaching it on multiple levels. They're investing in the infrastructure – data centers, power generation, the electric grid. But they're also implementing AI across their 270+ portfolio companies. CFO Michael Chae mentioned seeing real productivity gains in software engineering and cyber monitoring already.

**ALEX:** Speaking of their portfolio, the performance numbers across segments were pretty impre

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ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex.

JORDAN: And I'm Jordan. Today we're diving into Bank of America's Q4 2025 results, which came out this morning with some pretty solid numbers.

ALEX: Before we get started, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

JORDAN: Absolutely. Now, let's talk about these results. Bank of America delivered $7.6 billion in net income for Q4, which is up 12% year-over-year. Earnings per share came in at 98 cents, up a whopping 18% from last year.

ALEX: That's a strong finish to 2025. What really caught my attention was the revenue growth - 7% year-over-year, led by net interest income jumping 10% to $15.9 billion. And get this - they delivered 330 basis points of operating leverage in the quarter.

JORDAN: Operating leverage is really the name of the game for banks right now, and Bank of America seems to be executing well on that front. CEO Brian Moynihan highlighted that they kept headcount flat across the entire year despite growing client activity and volumes. That's impressive discipline.

ALEX: Let's break down some of the key drivers. Loan growth was robust at 8% year-over-year, and deposits grew 3%. Both of those outpaced industry averages. What's interesting is they're seeing growth across all their business segments.

JORDAN: Right, and looking at the deposit story - this has been a challenge across the industry post-pandemic. But Bank of America actually added 680,000 new consumer checking accounts during the year while maintaining an average balance of over $9,000. That's 28 consecutive quarters of net growth, or seven straight years.

ALEX: That's remarkable consistency. Now, let's talk about their outlook because this is where it gets really interesting. CFO Alastair Borthwick reiterated their guidance for 5% to 7% net interest income growth in 2026.

JORDAN: And here's why that's significant - they have about $12 to $15 billion in mortgage-backed securities and mortgage loans rolling off each quarter in 2026. These will be replaced with new assets yielding 150 to 200 basis points higher. That's essentially free money dropping to the bottom line.

ALEX: The asset repricing story is huge for Bank of America. They've been positioned for rising rates, but even in a declining rate environment, they're benefiting from this roll-off dynamic. Speaking of rates, how are they thinking about sensitivity?

JORDAN: Good question. They said that if rates dropped another 100 basis points instantly, NII would decline by about $2 billion over 12 months. But if rates went up 100 basis points, they'd benefit by around $700 million. So they're still somewhat asset-sensitive, but much less than before.

ALEX: Let's talk about their business segments. Consumer Banking continues to be a profit machine with a 28% return on allocated capital and what looks like around a 50% profit margin.

JORDAN: And Wealth Management is really hitting its stride. Net income grew from $1 billion in Q2 to $1.4 billion in Q4, with the return on allocated capital jumping from 20% to 28%. They added $500 billion in client balances across the year to reach $4.8 trillion total.

ALEX: Global Markets had another strong quarter too - their 15th consecutive quarter of improvement in sales and trading, generating nearly $21 billion in revenue for the full year. That's a record.

JORDAN: What I found fascinating in the Q&A was the discussion around technology and AI investments. Moynihan mentioned they have 18,000 people coding at the company, and AI has already taken 30% out of the coding process, saving them about 2,000 people equivalent in productivity.

ALEX: That's the kind of operational efficiency that drives long-term competitive advantages. They're spending s

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