Key Takeaways

Bank of America (BAC) shares rose Tuesday as second-quarter revenue and profit beat estimates despite slightly lowernet interest income(NII) than analysts were anticipating.

The bank reported net income of $6.9 billion, or 83 cents per share, below last year's marks but still better than the $6.6 billion, or 79 cents per share, that analysts had projected, according to estimates compiled by Visible Alpha.

Revenue also beat estimates as it grew about 1% year-over-year to $25.4 billion, which Bank of America credited to higher fees, along with improved sales and trading revenue. However, NII dropped 3% to $13.7 billion, narrowly below the $13.79 billion analysts expected, as Bank of America continued a trend of lower NII that started in last week's bank earnings as greater deposit costs offset the benefit of higher interest rates.

Consumer banking revenue slipped 3% to $10.2 billion, but wealth management revenue grew 6% to $5.6 billion, and investment banking fees surged 29% to $1.6 billion.

Bank of America's rivals JPMorgan Chase (JPM), Goldman Sachs (GS), Wells Fargo (WFC), and Citigroup (C) also reported higher second-quarter revenue from their investment banking activities in recent days.

Bank of America shares rose 3.6% to $43.41 as of 9:55 a.m. ET Tuesday. They are up over 28% in 2024.

Originally posted here:
Bank of America Posts Earnings Beat on Investment Banking Boost - Investopedia