Bank of America (BAC), one of the Big Four banking institutions in the United States, holds around 10 percent of all American bank deposits and provides key financial services, including commercial banking, wealth management, and investment banking. The stock reported earnings on Tuesday morning, and a stronger-than-expected performance for Q2 earnings led to a swift 5% increase in its price, despite a slight dip in profit. Harrison Miller, Investors Business Daily author, wrote, “Bank of America (BAC) reported a 5.7% earnings decline to 83 cents per share, just clearing FactSet views of 80 cents per share. Revenue, net of interest expense, rose 1% to $25.4 billion. The bank's revenue for the quarter beat analyst estimates of $25.22 billion.”
Additionally, net interest income fell 3% to $13.7 billion, with Bank of America citing that increased deposit costs outweighed the benefits of higher asset yields and modest loan growth. On a fully taxable-equivalent (FTE) basis, net interest income for the quarter was $13.9 billion, surpassing analysts' expectations of $13.83 billion as surveyed by FactSet. The company expects FTE net interest income to reach $14.5 billion by the last quarter of 2024. The more than 5% increase in the stock price on Tuesday contributed to the company's overall gain of over 30% so far this year.
Comments