Brian Moynihan, CEO of Bank of America, leaves the U.S. Capitol after a meeting with Republican members of the Senate Banking, Housing and Urban Affairs Committee on the issue of debanking on Thursday, February 13, 2025.
Tom Williams | Cq-roll Call, Inc. | Getty Images
Bank of America on Wednesday posted mixed results for the second quarter, beating estimates on earnings and missing on revenue.
It was the only major U.S. bank to fall short on revenue for the quarter.
Here’s what the company reported:
- Earnings: 89 cents per share vs. 86 cents per share expected by LSEG
- Revenue: $26.61 billion vs. expected $26.72 billion
Bank of America said profit climbed about 3% from a year earlier to $7.12 billion, or 89 cents per share, topping the 86 cent estimate.
Revenue rose about 4% to $26.61 billion, below analysts’ expectations, as the firm generated $14.82 billion in net interest income, missing the StreetAccount estimate by $70 million.
The company said that NII, which is the difference in what a bank pays its depositors and what it earns from loans and investments, rose about 7% in the quarter as deposit and loan growth were offset by lower interest rates compared with a year ago.
CEO Brian Moynihan pointed to the larger trends at his bank, saying that it was the fourth consecutive quarter that NII climbed amid rising deposits and loan growth. Big American banks have benefited from strong trading results and consumer credit that has held up in the first six months of the year.
“Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,” Moynihan said in an earnings release. “In addition, we saw good momentum in our markets businesses.”
The firm’s fixed income operations posted $3.25 billion in revenue, exceeding the $3.14 billion StreetAccount estimate, while equities trading revenue of $2.13 billion was just below expectations.
The firm said investment banking fees fell 9% to $1.4 billion, though that was still higher than the $1.27 billion StreetAccount estimate.
Shares of the bank have climbed roughly 5% this year before Wednesday.
On Tuesday, JPMorgan, Citigroup and Wells Fargo each posted results that topped analysts’ expectations for earnings and revenue. Later Wednesday, Goldman Sachs and Morgan Stanley both reported results that beat on the top and bottom lines, boosted by strong trading revenue.