Bank of America earnings
Net income of Bank of America Corp (NYSE:BAC)., one of the largest U.S. banks, increased 2.7 times in the second quarter to $8.96 billion, or $1.03 per share, from $3.28 billion, or 37 cents per share, in the same period last year, the bank said in a press release.
At the same time, the bank's revenues fell by 4% to $21.5bn from $22.3bn.
The profit figure was better than market forecasts, but revenue fell short of expectations. Experts polled by FactSet had on average forecast net profit of 77 cents per share for the bank, revenue of $21.8bn and net interest income of $10.4bn.
BofA's significant earnings growth was driven in part by a $2.2 billion dissolution of reserves.
The bank's non-interest income fell 2% last quarter to $11.2bn.
Fixed income, commodities and foreign exchange (FICC) revenues fell 38% to $2 billion and equity revenues jumped 33% to $41.6 billion.
BofA's retail banking revenues rose 4.3% to $8.19 billion and deposits rose 21% to $979.1 billion.
Global Markets Division revenues were flat at $5.09 billion, while wealth management and investment management climbed 14% to $5.1 billion.
The bank's Tier 1 capital adequacy ratio (CET1) stood at 11.5% at the end of June, up from 11.6% a year earlier.
BofA shares were down 1.8% in pre-market trading on Wednesday. The bank's market value has risen 31.5% since the beginning of the year, while the Standard Poor's 500 stock index added 16.3% over the period.