- Bank of America profit climbed about 3% from a year earlier to $7.12 billion, or 89 cents per share.
- Revenue climbed about 4% to $26.61 billion, below analysts’ expectations.
- CEO Brian Moynihan pointed to the larger trends at his bank, saying that it was the fourth consecutive quarter that NII rose amid rising deposits and loan growth.
Bank of America
on Wednesday posted mixed
results
for the second quarter, beating estimates on earnings and missing on revenue.
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It was the only major U.S. bank to fall short on revenue for the second quarter.
Here’s what the company reported:
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- Earnings: 89 cents per share vs. 86 cents per share expected by LSEG
- Revenue: $26.61 billion vs. expected $26.72 billion
The company said profit climbed about 3% from a year earlier to $7.12 billion, or 89 cents per share, topping the 86 cent estimate.
Revenue climbed about 4% to $26.61 billion, below analysts’ expectations, as the firm generated $14.82 billion in net interest income, missing estimates from StreetAccount by $70 million.
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The company said that NII, which is the difference in what a bank pays its depositors and what it earns from loans and investments, rose about 7% in the quarter as deposit and loan growth were offset by lower interest rates compared to a year ago.
CEO Brian Moynihan pointed to the larger trends at his bank, saying that it was the fourth consecutive quarter that NII rose amid rising deposits and loan growth. Big American banks have benefited from strong trading results and consumer credit that has held up in the first six months of the year.
“Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,” Moynihan said in the earnings release. “In addition, we saw good momentum in our markets businesses.”
The firm’s fixed income operations posted $3.25 billion in revenue, exceeding the $3.14 billion StreetAccount estimate, while equities trading revenue of $2.13 billion was just below expectations.
The firm said investment banking fees fell 9% to $1.4 billion, though that was still higher than the $1.27 billion estimate, according to StreetAccount
Shares of the bank have climbed roughly 5% this year before Wednesday.
On Tuesday,
JPMorgan
,
Citigroup
and
Wells Fargo
each posted results that topped analysts’ expectations for earnings and revenue. Later Wednesday,
Goldman Sachs
and
Morgan Stanley
both reported results that
beat on the top and bottom lines,
boosted by
strong trading revenue.
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