Bank of America (NYSE:BAC) reported stronger-than-expected results for its second quarter to push its shares modestly higher in pre-open Tuesday.
Earnings per share came in at $0.88, ahead of the consensus of $0.84. Revenue rose 11% year-over-year to $25.2 billion, ahead of the consensus of $25.02B.
Net interest income FTE surged to $14.3B, in line with the consensus. Earnings were boosted by trading revenue (excluding DVA) of $4.39B, up 10% and easily ahead of the consensus of $3.98B.
“We delivered one of the strongest quarters and first half net income periods in the company’s history. Continued organic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates and produced an 11% increase in revenue. We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market,” said Chairman and CEO Brian Moynihan.
“All businesses performed well, and we saw improved market shares, particularly in our Sales and Trading and Investment Banking businesses. A strong balance sheet and ample liquidity allowed us to continue investments in our franchise to drive long-term value for stakeholders.”
FICC and equities trading revenues, both excluding DVA, also topped analyst estimates. Return on average tangible common equity was 15.5%, better than the 14.7% expected.
The bank attracted $1.88 trillion in total deposits.
Bank of America previously announced plans to increase quarterly common stock dividend by 9% in the third quarter.
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