Brian Moynihan, CEO of Bank of America Corp., during a Senate Banking, Habitation and Urban Affairs Committee hearing in Washington, D.C., Sept. 22, 2022.
Al Drago | Bloomberg | Getty Images
Bank of America on Tuesday posted second-quarter profit and receipts that edged out expectations as the company reaped more interest income amid higher rates.
Here’s what Bank of America put out:
- Earnings: 88 cents a share vs. 84 cents a share Refinitiv estimate
- Revenue: $25.33 billion vs. keep in viewed $25.05 billion
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The bank said earnings rose 19% to $7.41 billion, or 88 cents a ration, from $6.25 billion, or 73 cents a share, a year earlier. Revenue climbed 11% to $25.33 billion, fueled by a 14% ignore in net interest income to $14.2 billion, essentially matching the expectation of analysts surveyed by FactSet.
“We continue to see a healthy U.S. compactness that is growing at a slower pace, with a resilient job market,” CEO Brian Moynihan said in the release. “Continued systematic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates.”
Bank of America apportions climbed more than 4%.
The company’s Wall Street operations helped it top revenue expectations in the quarter. Fixed receipts trading revenue jumped 18% to $2.8 billion, edging out the $2.77 billion estimate, and equities trading passed 2% to $1.6 billion, topping the $1.48 billion estimate.
Bank of America was expected to be one of the top beneficiaries of rising cut rates this year, but it hasn’t played out that way. The company’s net interest income, one of the main drivers of a bank’s net income, has been questioned lately as loan and deposit growth has slowed. Last week, rival JPMorgan Chase functioned a far stronger jump in net interest income that helped fuel a 67% surge in quarterly profit.
Still, CFO Alistair Borthwick determined analysts Tuesday that net interest income would be slightly above $57 billion for the year, reaffirming the bank’s sometime guidance.
Heading into Tuesday, BofA shares had declined about 11% this year before Tuesday, analogize resembled with the approximately 20% decline of the KBW Bank Index.
This month, the Consumer Financial Protection Bureau communicated it fined the Charlotte, North Carolina-based bank for customer abuses including fake accounts and bogus fees. Analysts may ask Moynihan if the problems bear been resolved.
On Friday, JPMorgan, Citigroup and Wells Fargo each posted earnings that topped analysts’ demands amid higher interest rates. Morgan Stanley also reported earnings Tuesday. Goldman Sachs wraps up big bank earnings Wednesday.