Bank of America (BAC) churned out more profits and revenue in the second quarter after a surprisingly strong showing from its Wall Street unit.
Net income was up 19% compared to the year-earlier period to $7.4 billion. Revenue rose 11% to $25.2 billion.
"We continue to see a healthy US economy that is growing at a slower pace, with a resilient job market," said CEO Brian Moynihan.
The results from the nation's second-largest bank are the latest demonstration of how the diversity of some of the largest US lenders is helping them thrive even as smaller regional banks struggle.
Bank of America — like JPMorgan Chase (JPM) and Wells Fargo (WFC) — showed during the second quarter that it was able to earn more money from its loans despite paying a lot more for deposits. It also managed to buck a trend of slower dealmaking and trading that is plaguing a number of other big banks.
Revenues from those businesses dropped during the last quarter at Citigroup (C) and JPMorgan Chase (JPM).
They were up at Bank of America when compared to the year-earlier period. It claims it had "zero trading loss" days during the first half of the year and the highest first-half sales and trading revenue in over a decade.
What also helped Bank of America was that it reported an increase in its net interest income compared to the year-earlier period. That measures the difference between what banks earn on their loans and what they pay out on their deposits.
That figure rose 14% to $14.3 billion.
JPMorgan, Wells Fargo, and Citigroup all reported jumps in this key measure of profitability.
PNC (PNC), a big regional lender based in Pittsburgh, cut its forecast on Tuesday for full-year net interest income, sending shares down in premarket trading.
It estimated net interest income to rise 5% to 6% in 2023 from last year, compared to its previous forecast of 6% to 8% growth.
Many other regional banks are also expected to revise down their expectations of net interest income in the coming days and weeks as they struggle with rising funding costs.
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