Bank of America reported a rise in second-quarter earnings on Wednesday, driven by strong net interest income and improved trading performance. Net income rose to USD 7.1 billion, or USD 0.89 per share, compared with USD 7.0 billion, or USD 0.88 per share, in the same period last year. Analysts had expected USD 0.84, according to LSEG data.
Revenue rose to USD 26.7 billion, up from USD 25.2 billion a year earlier, according to the bank’s earnings release. The bank said net interest income—what it earns from lending minus what it pays on deposits—increased 7% year-on-year to approximately USD 14.7 billion, supported by higher interest rates and modest loan growth.
“We delivered another solid quarter, with earnings per share up seven percent from last year,” said Bank of America Chairman and CEO Brian Moynihan in a statement. “Customer activity was strong and growing, and asset quality remained healthy.”
The Global Markets division generated USD 5.3 billion in revenue, up 14% from a year earlier, driven by gains in fixed income and equities trading, according to the Financial Times. Fixed-income, currencies and commodities (FICC) trading revenue rose 19% to USD 2.8 billion, while equities trading revenue climbed 12% to USD 1.6 billion, according to the same report.
Investment banking fees slid 9% to USD 1.4 billion, reflecting continued softness in dealmaking activity, according to Reuters. Provision for credit losses rose to USD 1.6 billion, from USD 1.5 billion a year earlier.
Average loans and leases grew 4% to USD 1.1 trillion, while total deposits rose 1% to USD 1.9 trillion. The bank also reported growth in its consumer checking account base, continuing a multi-year trend.
