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BLOOMBERG
Bank of America (BofA) Corp’s second-quarter profit soared after its core Wall Street businesses exceeded analysts’
expectations.
The firm’s fixed-income and equity traders delivered a surprise gain, covering a slight miss in expected net interest income. Revenue from fixed-income, currencies and commodities trading rose 18%
to $2.8 billion in the second quarter, as clients reacted to changing interest rates, the bank said. That helped the bank top analysts’ earnings-per-share estimates.
“All businesses performed well, and we saw improved market shares, particularly in our sales and trading and investment banking businesses,†CEO Brian Moynihan said.
The results offer another look at how Wall Street fared through a tumultuous a period that included upheaval among regional lenders capped by the failure of First Republic Bank. JPMorgan Chase & Co and Citigroup Inc both posted trading results that beat analysts’ expectations. They also beat estimates for net interest income, and raised their forecasts for the remainder of the year.
At Bank of America, net interest income — the revenue collected from loan payments minus what depositors are paid — came in at $14.16 billion, slightly below analysts’ estimates.