Bank Of America Revenue Exceeding Expectations

Bank of America reported strong second-quarter results, with revenue and profit exceeding expectations, driven by growth in investment banking and asset management fees. The bank's earnings per share reached 83 cents, surpassing the LSEG estimate of 80 cents, while revenue climbed to $25.54 billion, beating the projected $25.22 billion.

Despite a 6.9% year-over-year decline in profit to $6.9 billion, the bank's performance was bolstered by significant increases in key areas. Investment banking fees rose 29% to $1.56 billion, outperforming the StreetAccount estimate of $1.51 billion. Asset management fees also saw a substantial 14% increase to $3.37 billion, contributing to a 6.3% revenue growth in the wealth management division, which reached $5.57 billion.

Net interest income (NII) experienced a 3% decrease to $13.86 billion, aligning with analyst expectations. However, the bank's new guidance on NII has instilled confidence in investors regarding a potential turnaround. Bank of America projects NII to rise to approximately $14.5 billion in the fourth quarter of 2024, following earlier predictions that it would bottom out in the second quarter.

The positive outlook on NII, a crucial metric for bank earnings, helped boost Bank of America's shares by 2% in premarket trading. This performance aligns with the trend seen among other major banks, including JPMorgan Chase, Wells Fargo, Citigroup, and Goldman Sachs, which have all reported better-than-expected results for the quarter.