Bank of America on tuesday Said Second-quarter revenue and profit beat expectations due to higher investment banking and asset management fees.
Here’s what the company reported:
- Revenue: 83 cents per share vs. LSEG’s forecast of 80 cents per share
- Revenue: Estimated at $25.54 billion vs. $25.22 billion
The bank said profits fell 6.9% from a year ago to $6.9 billion, or 83 cents a share, as rising interest rates reduced net interest income. Revenue rose less than 1% to $25.54 billion.
The firm was boosted by investment banking fees, which rose 29% to $1.56 billion, beating the $1.51 billion expected by Street accounts. Asset management fees rose 14% to $3.37 billion, helped by rising stock prices, and revenues from the firm’s asset management division rose 6.3% to $5.57 billion, roughly in line with expectations.
Net interest income fell 3% to $13.86 billion, also in line with Street accounts estimates.
But new guidance on the measure, known as the NII, gave investors confidence that a recovery was underway. The NII is one of the main ways banks earn profits.
The measure, the difference between the profits banks make on loans and the amount they pay out to depositors, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a slide. presentation.
This confirms executives’ previous expectations to investors that net interest income would likely bottom out in the second quarter.
Wells Fargo shares fell on Friday after the company released disappointing NII numbers, showing how hung up investors are on the metric.
Bank of America shares rose 4.4%, buoyed by the NII guidance.
last week, JPMorgan Chase, Wells Fargo and Citigroup Both sales and profits exceeded expectations, and the momentum is Goldman Sachs on Monday, buoyed by a pick-up in activity on Wall Street.
