Bank of America Corp (NYSE: BAC)
Shares of Bank of America jumped marginally in premarket trade on Monday, after the bank revealed upbeat second-quarter earnings.
Profit grew 33% due to rising interest rates in recent quarters as well as the recent tax law enacted by the Trump administration.
The bank, which is the second-largest in the country by assets, expects its overall credit quality to remain strong across both the commercial and consumer portfolios.
BAC shareholders also received $6.2 billion during the period, through share buybacks and common dividends.
BAC Earnings & Outlook
The lender revealed net income of $6.47 billion, or 63 cents per share, compared with $4.75 billion, or 44 cents per share, in the second quarter of 2017. Adjusted for one-time items, the bank earned 64 cents per share versus analyst consensus of 57 cents per share.
Total revenue for the quarter was $22.61 billion, down 1.0% from $22.83 billion a year ago. Analysts expected $22.286 billion, according to Thompson Reuters data.
Bank of America Corp CEO Comments
Brian Moynihan, Chief Executive Officer of BAC issued the following remarks: “Solid operating leverage and client activity drove earnings higher this quarter. Responsible growth continued to deliver as a driver for every area of the company. We grew consumer and commercial loans; we grew deposits; we grew assets within our Merrill Edge business; we generated more net new households in Merrill Lynch; and we supported more institutional client activity â€” all of this while we continued to invest in our businesses and began an additional $500 million technology investment, which we intend to spend over the next several quarters, due to the benefits we received from tax reform. Even while making investments in people, technology, new markets and real estate, we managed to lower expenses again this period.”
Bank of Americ Profile
Bank of America Corp provides financial and banking services and services for small businesses, large corporations, individual consumers, government agencies, and institutional investors worldwide.
The company operates through the following segments: Global Wealth & Investment Management, Consumer Banking, Global Banking, and Global Markets.
The Global Wealth & Investment Management segment provides brokerage, investment management, wealth management solutions; and retirement, trust, and banking products targeted to ultra-high net worth and high net worth clients, as well as customized services to meet clients’ banking and trust needs, specialty asset management, investment management, and wealth structuring services.
The Consumer Banking category provides money and traditional savings accounts, IRAs and CDs, interest and noninterest bearing checking accounts, and home equity loans, investment products and accounts; and debit and credit cards, indirect and direct loans, home equity loans, and residential mortgages.
This segment offers its services and products via approximately 16,000 ATMs; 4,500 financial centers; digital banking platforms; and call centers.
The Global Banking segment offers lending services and products, including asset-based and real estate lending, commercial leases, loans, trade finance, commitment facilities, and treasury solutions, including foreign exchange, working capital management solutions, treasury management, short-term investing options; and equity distribution and underwriting services.
The Global Markets division provides securities clearing, market-making, custody, financing, and settlement services, as well as foreign exchange, mortgage, risk management services.
Bank of America Corporation was founded in 1874 by Amadeo Peter Giannini. Its headquarters are based in Charlotte, North Carolina. –Reuters