Bank of America beats on earnings

Bank of AmericaREUTERS/Brendan McDermidBank of America reports second quarter earnings on Wednesday.

Bank of America reported second quarter earnings on Wednesday that were stronger than expected.

The bank reported earnings per share of $US0.45 on revenue of $US22.35 billion.

Earnings included a one-time favourable adjustment of $US0.04 per share.

Analysts were expecting adjusted earnings per share of $US0.36 on revenue of $US21.38 billion, according to Bloomberg.

The stock is up 2.5% in pre-market trade on Wednesday.

In the same quarter last year, the bank reported adjusted earnings per share of $US0.41 on revenue of $US22 billion.

“Solid core loan growth, higher mortgage originations and the lowest expenses since 2008 contributed to our strongest earnings in several years, as we continued to build broader and deeper relationships with our customers and clients,” said CEO Brian Moynihan in a press release.

“We also benefited from the improvement in the U.S. economy, where we are particularly well positioned,” he said.

Revenues in the investment banking department were $US4.1 billion.

Trading revenue was $US4.3 billion.

Moynihan also made a note about stock buybacks and dividend payouts, saying, “we continued to deliver value for our shareholders by increasing tangible book value and returning $US1.3 billion in capital through common stock repurchases and dividends.”

Last quarter, the bank beat on earnings per share but missed on revenue, and CEO Brian Moynihan included a bullish message about the economy in a press release.

“We see continued encouraging signs in customer and client activity, with consumer spending increasing and utilization of credit by our commercial customers rising,” he said.

Goldman Sachs and Citigroup will report Q2 earnings on Thursday.

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