Higher rates help Bank of America beat Q2 estimates
Bank of America posted a sharp rise in both its top and bottom lines thanks to higher interest rates.
Bank of America Corp.
$44.38
10:44 24/12/24
"Continued organic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates and produced an 11% increase in revenue. We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market," group chairman and chief executive officer, Brian Moynihan, said.
The lender, one of the country's largest, said that revenues, net of interest expense, jumped by 11% over the three months ending on 30 June to reach $25.2bn (FactSet: $24.98bn).
Net income meanwhile strengthened by 19% to $7.4bn for earnings per share of 88 US cents (FactSet: 84 cents).
Driving the lender's gains, net interest income shot up by 14% or $1.7bn to $14.2bn.
A total of $1.1bn in credit provisions were booked, for an increase of $602m in comparison to the year earlier period.
Average deposits fell by 7% to $1trn, but remained 40% above their pre-pandemic levels.
As of 1217 BST, shares in Bank of America were edging up 0.51% to $29.55.