Bank of America posts revenue beat despite quarterly earnings miss

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Bank of America's second quarter profit fell to $6.2 billion, or 73 cents per diluted share, compared to $9.2 billion, or $1.03 per share, during the same period a year ago.

posted net income of $2.9 billion on revenue of $9.1 billion. Record average deposits grew to more than $1 trillion, while combined credit and debit card spend for the bank climbed to $220.5 billion, up 10% year over year.

"Our U.S. consumer clients remained resilient with continued strong deposit balances and spending levels," Bank of America chair and CEO Brian Moynihan said in a statement. "Loan growth continued across our franchise and our markets teams helped clients navigate significant volatility reflecting economic uncertainty."

Meanwhile, the global wealth and investment management unit saw net income increase 16% to $1.2 billion and revenue of $5.43 billion. Net income in the global banking segment declined 38% to $1.5 billion, hurt by provision expense, while revenue slipped 2% to $5 billion. Bank of America's investment banking fees fell 47% to $1.1 billion during the quarter. Looking ahead, the bank expects net interest income to increase by $900 million to $1 billion in the third quarter.

"We believe our earnings generation over the next 18 months will provide ample capital to support growth, pay dividends, buy back shares and continue to invest in our people, platforms and communities as we grow into new regulatory capital level requirements," Bank of America Chief Financial Officer Alastair Borthwick added.

 

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