Bank of America falls short of Q2 revenue expectations

Major US lender Bank of America has posted revenues that fell short of estimates on the Street despite revealing a quarterly profit that was well ahead of expectations.

Bank of America said on Wednesday that revenues fell 4% year-on-year to $21.6bn, just shy of the $21.8bn expected by analysts, driven by a 6% drop in net interest income due to softer interest rates.

Lower trading revenues and a $704.0m gain recorded a year earlier also weighed on overall revenues.

Bank of America also reported earnings per share of $1.03 each, ahead of the $0.77 expected. However, excluding a $2.0bn tax benefit, earnings per share only just beat estimates at $0.80 each.

Chief executive Paul Donofrio pointed towards the "continued challenge of low interest rates" as the principal cause of its less than perfect quarterly performance.

As of 1335 BST, Bank of America shares were down 1.63% in pre-market at $39.21 each.