Brian Moynihan, CEO of Bank of America Corp., during a hearing of the Senate Committee on Banking, Housing and Urban Affairs in Washington, D.C., September 22, 2022.
Al Drago | Bloomberg | Getty’s paintings
Bank of America on Tuesday, it reported second-quarter profit and revenue that exceeded expectations as the corporate earned more interest income with higher rates of interest.
Here’s what the corporate said:
- Earnings: 88 cents per share vs. 84 cents per share Respect Refinitiv
- Revenue: $25.33 billion vs. $25.05 billion expected
related investment news
Bank he said earnings rose 19% to $7.41 billion, or 88 cents a share, from $6.25 billion, or 73 cents a share, a 12 months earlier. Revenue rose 11% to $25.33 billion, driven by a 14% jump in net interest income to $14.2 billion, broadly consistent with expectations of analysts surveyed by FactSet.
“We proceed to see a healthy US economy growing at a slower pace with a resilient labor market,” CEO Brian Moynihan said in an announcement. “Continuous organic customer growth and customer activity across our businesses complemented the positive impact of higher rates of interest.”
Bank of America shares rose lower than 1% in premarket trading.
The corporate’s Wall Street operations helped it exceed revenue expectations for the quarter. Fixed income trading revenue increased 18% to $2.8 billion, beating the estimate of $2.77 billion, while equity trading fell 2% to $1.6 billion, beating the estimate of $1.48 billion.
Bank of America was expected to be one of the most important beneficiaries of rising rates of interest this 12 months, but that did not occur. The corporate’s net interest income, one of the primary drivers of the bank’s income, has recently been called into query because of a slowdown in the expansion of loans and deposits. Last week, rival JPMorgan Chase recorded a much stronger jump in net interest income, which contributed to a 67% increase in quarterly profit.
Bank of America shares are down about 11% this 12 months ahead of Tuesday, compared with a couple of 20% drop within the KBW Bank index.
This month, the Consumer Protection Bureau said it had fined a Charlotte, North Carolina-based bank for abusing customers, including fake accounts and false charges. Analysts can ask Moynihan if the problems have been resolved.
JPMorgan on Friday Citigroup AND Wells Fargo each reported earnings that exceeded analyst expectations with higher rates of interest. Morgan Stanley can also be listed on Tuesday and Goldman Sachs summarizes the outcomes of the large banks on Wednesday.