Brian Moynihan, CEO of Bank of America Corp., during a Senate Banking, Housing and Urban Affairs Committee hearing in Washington, D.C., Sept. 22, 2022.
Al Drago | Bloomberg | Getty Images
Bank of America on Tuesday posted second quarter profit and revenue that edged out expectations as the company reaped more interest income amid higher interest rates.
Here’s what the company reported:
- Earnings: 88 cents a share, vs. 84 cents a share Refinitiv estimate
- Revenue: $25.33 billion, vs. expected $25.05 billion
The bank said earnings rose 19% to $7.4 billion, or 88 cents a share, from a year earlier. Revenue climbed 11% to $25.33 billion, fueled by a 14% jump in net interest income to $14.2 billion, essentially matching the expectation of analysts surveyed by FactSet.
While analysts expected Bank of America to be one of the top beneficiaries of rising interest rates, it hasn’t played out that way. The company’s net interest income, one of the main drivers of a bank’s revenue, has been under pressure lately as loan and deposit growth has slowed.
Bank of America shares have declined about 11% this year, compared with the approximately 20% decline of the KBW Bank Index.
This month, the Consumer Financial Protection Bureau said it fined the Charlotte, North Carolina-based bank for customer abuses including fake accounts and bogus fees. Analysts may ask CEO Brian Moynihan if the problems have been resolved.
On Friday, JPMorgan Chase, Citigroup and Wells Fargo each posted earnings that topped analysts’ expectations amid higher interest rates. Morgan Stanley is scheduled to release results later Tuesday, and Goldman Sachs wraps up big bank earnings Wednesday. ┬а
This story is developing. Please check back for updates.
