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Banking: Bank of America’s stock rises after second-quarter earnings and revenue beat expectations

Bank of America Corp.’s second-quarter earnings beat Wall Street expectations, sending the megabank’s stock up by 0.8% in premarket trading on Tuesday.

Bank of America

said its profit for the three months ended June 30 rose to $7.4 billion, or 88 cents a share, from $6.2 billion, or 73 cents a share, in the year-ago quarter.

The bank beat the analyst forecast of 84 cents a share by four cents, according to estimates compiled by FactSet.

Bank of America’s second-quarter revenue rose 11% to $25.2 billion, ahead of the Wall Street estimate of $24.98 billion.

CEO Brian Moynihan said the bank delivered one of the strongest quarters in the company’s history, with organic client growth.

“We continue to see a healthy U.S. economy that is growing at a slower pace, with aresilient job market,” Moynihan said.

Moynihan highlighted the bank’s sales and trading unit, as well as its investment banking business for gaining market share.

In its consumer unit, Bank of America said it added about 157,000 net new checking accounts in the quarter, for its 18th consecutive quarter of growth. It also added 1.2 million credit card accounts.

Bank of America’s stock price has fallen by 11.2% in 2023, compared to a 17.8% gain by the S&P 500

and a 1.1% gain by the Financial Select Sector SPDR ETF

Bank of America marks the latest large bank to weather a rocky period in the banking sector with better-than-expected profits.

On Friday, JPMorgan Chase & Co.
Citigroup Inc.

and Wells Fargo & Co.

all beat Wall Street expectations. Goldman Sachs Group Inc.

reports its second-quarter results on Wednesday.

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