Bank of America beats, profits climbs 33%

Bank of America Merrill Lynch announced second-quarter adjusted earnings of $US0.63 a share Monday morning, a 43% jump from last year. Analysts had expected adjusted earnings of $US0.57.

Here are the key numbers:

  • Revenue: $US22.6 billion, down from Q2 2017 revenue of $US22.8 billion, which included a $US793 million pretax gain on the sale of the bank’s non-US consumer card business.
  • Net income: $US6.8 billion, up 33% from 2017.
  • Net interest income: Increased $US664 million, or 6%, to $US11.7 billion, thanks to higher interest rates, as well as loan and deposit growth.
  • Global wealth and investment management: Net income increased to $US968 million, up 20%. Record client balances of nearly $US2.8 trillion.
  • Credit card charge-offs rise: Net charge-offs increased $US105 million to $US896 million.
  • Investment banking fees down: Firmwide investment banking fees decreased 7% to $US1.4 billion.
  • Global markets: Net income increased to $US1.1 billion, up 34%. Sales and trading revenue jumped 6% to $US3.4 billion.
  • Record first-half net income: $US13.7 billion in profits in the first half of the year.

“Solid operating leverage and client activity drove earnings higher this quarter. Responsible growth continued to deliver as a driver for every area of the company,” CEO Brian Moynihan said.

Bank of America’s strong showing follows robust earnings results from peers Citigroup and JPMorgan, which announced record second-quarter net profits Friday.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.