Bank of America (BofA) announced better-than-expected profits in the second quarter of the year, benefiting from market volatility. Net profit increased year-over-year to $7.1 billion (89 cents per share). The expectation was 86 cents.
The bank’s trading income increased by 15% to $5.4 billion, while fixed income, foreign exchange and commodities (FICC) income grew by 16%, and equity trading by 10%.
This marks BofA’s 13th consecutive quarter of annual growth. CEO Brian Moynihan highlighted the strong performance of consumer spending and the increase in commercial loan utilization. Interest income also rose 7% to $14.7 billion; the bank expects this figure to reach $15.5–15.7 billion in the final quarter of the year. Investment banking fees, however, fell 9% to $1.4 billion, lagging behind its competitors. However, analysts expect a revival in M&A trading in the second half of the year.BofA shares rose 5% year-to-date, and increased 1% in pre-market trading following the news.
