Bank of America (NYSE:BAC) surpassed earnings and revenue expectations for the second quarter, reporting an EPS of $0.83, above the Street estimate of $0.80. As a result, the company’s shares gained more than 5% intra-day today.
The company’s quarterly revenue also exceeded forecasts, reaching $25.4 billion compared to the Street estimate of $25.24 billion. However, net income decreased to $6.9 billion from $7.4 billion in the same quarter last year, due to higher deposit costs and increased provisions for credit losses.
Revenue, net of interest expense, rose 1% year-over-year, driven by higher asset management and investment banking fees, along with sales and trading revenue.
However, net interest income (NII) declined by 3% to $13.7 billion as higher deposit costs offset gains from higher asset yields and modest loan growth. Additionally, noninterest expenses increased by 2% due to investments in personnel and revenue-related compensation.