Shortly thereafter, Bank of America announced its second quarter financial results – a beat-on-the-top and bottom line, high earnings performance. The revenue numbers came in below expectations. The nation’s second largest bank by assets crushed expectations for earnings per share of $3.36. It lagged in overall revenue and net interest income.
For the quarter, Bank of America earned 89 cents a share, 3 cents ahead of analyst estimates calling for earnings of 86 cents. This was a profit surge of nearly 3% on a varied annual basis, up to $7.12 billion. The bank’s revenue came in at $26.61 billion, short of the expected $26.72 billion.
Bank of America suffered a miss on revenues. Nonetheless, it still represents a very modest increase of around 4% over the same period last year. The bank’s net interest income came in at $14.82 billion, though this was $70 million below market expectations.
In commentary on the bank’s third quarter performance, CEO Brian Moynihan underscored the ongoing resilience of consumers. He noted, “Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose.”
Moynihan emphasized the positive trends within the bank’s operations, stating, “In addition, we saw good momentum in our markets businesses.” This means that although many places stumbled on the path of change, others were able to thrive in innovation and retention.
Bank of America’s stock is up nearly 5% on the year. This nearly 10% uptick indicates that the market has a very optimistic outlook, slightly overshadowing the less-than-stellar quarterly performance. The bank’s net interest income hit a record high for the fourth straight quarter. This positive trend is indicative of the strength of its fundamental core lending operations.