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Brian Moynihan, CEO, Bank of America Corp. , during a Senate Banking, Housing, and Urban Affairs Committee hearing in Washington, D.C., on September 22, 2022.
Drago | bloomberg | Getty Images
American bank On Tuesday, it reported second-quarter earnings and revenue that beat expectations as the company earned more interest income amid higher rates.
This is what Bank of America said:
- Earnings: 88 cents per share versus 84 cents per share in the Refinitiv estimate
- Revenue: $25.33 billion vs. $25.05 billion expected
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the bank He said Earnings rose 19% to $7.41 billion, or 88 cents per share, from $6.25 billion, or 73 cents per share, a year earlier. Revenue rose 11% to $25.33 billion, driven by a 14% jump in net interest income to $14.2 billion, essentially matching the expectations of analysts polled by FactSet.
“We continue to see a healthy US economy growing at a slower pace, with a flexible labor market,” CEO Brian Moynihan said in the statement. “Continuous organic growth of customers and customer activity across our business is complementing the beneficial effects of higher interest rates.”
Bank of America stock jumped less than 1% in pre-market trading.
The company’s Wall Street operations helped it beat revenue expectations in the quarter. Fixed income trading revenue jumped 18% to $2.8 billion, beating the estimate of $2.77 billion, and equity trading fell 2% to $1.6 billion, beating estimates of $1.48 billion.
Bank of America was expected to be one of the biggest beneficiaries of higher interest rates this year, but it didn’t quite pan out. The company’s net interest income, one of the main drivers of the bank’s revenue, has been called into question recently as loan and deposit growth slows. Last week, a competitor c. B. Morgan Chase It posted a much stronger jump in net interest income that helped boost quarterly earnings by 67%.
Shares of Bank of America are down about 11% this year prior to Tuesday, compared to a drop of about 20% for the KBW Bank index.
This month, the Consumer Financial Protection Bureau said it fined a Charlotte, North Carolina bank for customer violations including fake accounts and bogus charges. Analysts might ask Moynihan if the problems have been resolved.
On Friday, JPMorgan, Citigroup And Wells Fargo Each reported profits that beat analysts’ expectations amid rising interest rates. Morgan Stanley As reported Tuesday earnings. Goldman Sachs The major banks’ earnings close on Wednesday.
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