Earnings wrap: BoA earnings exceed expectations
Bank of America 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 BofA 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,” Chief Executive Brian Moynihan said in a statement Tuesday.
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. Last week, 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. For the full year, NII is likely to total just above $57 billion, up more than 8% from 2022, chief financial officer Alastair Borthwick said on a conference call with analysts, reiterating a previous forecast.
Morgan Stanley’s Wall Street operations sputtered as a slowdown in trading and investment banking put a dent in second-quarter earnings.
Revenue from the trading unit slid 22% from a year earlier and that, combined with a dealmaking slump, led to results that were weaker than
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