Bank of America (BofA) Q2 revenue and profits jumps as rates rise

Bank of America (NYSE: BAC) had a strong quarter, helped by rising interest rates. The company’s revenue jumped by 11% to over $25.33 billion. Analysts were expecting the bank’s revenue to come in at $25.05 billion. Its earnings per share was 88 cents, higher than the expected 84 cents.

Bank of America’s net income rose by 19% to $7.4 billion while the net interest income rose by 14% to $1.7 billion. NII is an important figure that includes interest rates, which have risen to over 5%.

The rising profits were offset by an increase of $602 million to $1.1 billion. Non-interest expenses jumped by 5% to over $765 million. In a statement, Brian Moynihan, the company’s CEO said:

“We delivered one of the strongest quarters and first-half net income periods in the company’s history. Continued organic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates and produced an 11% increase in revenue.”

Consumer banking’s revenue rose by 15% to $10.5 billion while the net income rose to $2.9 billion. This happened as the company added 157k net new consumer checking accounts, leading to over 36.3 million.

Global Wealth and Investment Management’s net income rose to $978 million as client balances rose to $3.6 trillion. Further, global banking’s net income rose to $2.7 billion. Bank of America’s stock price rose by 0.70% in the premarket session.

Other American banks have published strong financial results in the past few days. As I wrote here, JP Morgan’s revenue jumped to over $42.4 billion while its net income rose to $14.4 billion.