CEOs from left, Charles Scharf, Wells Fargo, Brian Moynihan, Bank of America, and Jamie Dimon, JPMorgan Chase, testify during the Senate Banking, Housing, and Urban Affairs Committee hearing titled “Annual Oversight of Wall Street Firms,” in Hart Building on Wednesday, December 6, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images
Bank of America on Tuesday said second-quarter revenue and profit topped expectations on rising investment banking and asset management fees.
Here’s what the company reported:
- Earnings: 83 cents a share vs. 80 cents a share LSEG estimate
- Revenue: $25.54 billion vs. $25.22 billion estimate
The bank said profit slipped 6.9% from the year earlier period to $6.9 billion, or 83 cents a share, as the company’s net interest income declined amid higher interest rates. Revenue climbed less than 1% to $25.54 billion.
The firm was helped by a 29% increase in investment banking fees to $1.56 billion, edging out the $1.51 billion StreetAccount estimate. Asset management fees rose 14% to $3.37 billion, helping the firm’s wealth management division post a 6.3% increase in revenue to $5.57 billion, essentially matching the estimate.
Net interest income slipped 3% to $13.86 billion, also matching the StreetAccount estimate.
The measure, which is the difference between what the bank earns on loans and what it pays depositors for their savings, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a slide presentation. Executives have told investors in April that net interest income would bottom in the second quarter.
The measure, known as NII, is It’s one of the main ways that banks earn money.
Wells Fargo shares fell on Friday when it posted disappointing NII figures, showing how much investors are fixated on the metric.
Last week, JPMorgan Chase, Wells Fargo and Citigroup each topped expectations for revenue and profit, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Street activity.
This story is developing. Please check back for updates.
#Bank #America #BAC #earnings
