Bank of America rallies on strong second-quarter earnings
Bank of America is up about 1.5% in premarket trading after second-quarter diluted earnings of $0.89 per share came in above the $0.84 consensus call from Wall Street. Net interest income was $14.7 billion, a smidge higher than the expected $14.6 billion.
Revenues of $26.6 billion were a touch below estimates, though BofA’s trading and investment banking divisions did surprise to the upside with their top-line results, with the bank’s traders having their best second quarter on record.
“Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose,” Chair and CEO Brian Moynihan said.
The reports from America’s big banks — like BofA, peers JPMorgan and Wells Fargo also saw loan loss provisions come in below estimates — provide some affirmation that traders were “right” to price out recession risk over the past few months.
The solid results from Bank of America as well as Goldman Sachs (whose profit came in above estimates, too, on Wednesday morning) are fueling a broad rebound in bank stocks this morning after the Invesco KBW Bank ETF slumped 2.4% on Tuesday.
