Bank of America (BAC) reported double-digit growth in revenue and net income in the second quarter on Tuesday, as higher interest rates boosted income it generated from lending money.
Why Does This Matter?
Monetary policy tightening by the Federal Reserve led to higher net interest income (NII) for Bank of America. At $14.2 billion, the NII for the second-largest bank in the U.S. was up 14% compared to the second quarter of 2022. Another boost came from a growth in commercial loans and credit card loans.
Despite reporting double-digit growth, it may lack the punch rival JPMorgan Chase (JPM) delivered last week with a 67% jump in net income, driven by a 44% surge in net interest income.2
Generally, banks have performed better than analysts’ expectations this earnings season.3 Bank of America second quarter earnings per share was expected at 82 cents, according to YCharts estimates.4 However, it reported earnings of 88 cents per share, up from 73 cents per share in last year’s second quarter, beating forecasts.
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Source: www.investopedia.com
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