Bank of America Posts Better Profits, But Lower Revenue, Than Expected
The firm said Wednesday it earned $0.89 per share in the second quarter, beating estimates by 4 cents, while revenue was up 4% from the same time a year ago to $26.46 billion, slightly below the analyst consensus compiled by Visible Alpha.
Bank of America's net interest income rose 7% year-over-year to $14.67 billion, just below the $14.71 billion that analysts had forecast.
"Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose," CEO Brian Moynihan said in a press release. "In addition, we saw good momentum in our markets businesses."
Bank of America shares were up 1.8% premarket following Wednesday's results. They entered the day up 5% since the start of this year.
The bank topped estimates last quarter, when Moynihan noted strong performance from its business clients and resilience from American consumers. Some banking executives have grown more confident in the macroeconomic outlook for the rest of this year, experts have said.
Bank stocks got a boost last month after the Federal Reserve's annual stress test showed that the biggest U.S. banks would easily be capable of surviving a recession. Banking rivals JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) reported largely solid results on Tuesday, and Goldman Sachs (GS) is slated to post results this morning.
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President Donald Trump's AI plan calls for massive data centers. Here's how it may affect energy in the US
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19 minutes ago
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