Bank of America stock rises on Q2 earnings beat

Investing.com -- Bank of America reported second-quarter earnings that exceeded analyst expectations, with net income rising to $7.1 billion, or $0.89 per share, beating the consensus estimate of $0.86. Revenue increased 4% YoY to $26.5 billion, slightly below the analyst forecast of $26.75 billion.

The financial giant saw its net interest income grow 7% YoY to $14.7 billion, marking the fourth consecutive quarter of sequential growth. This improvement was driven by fixed-rate asset repricing, higher Global Markets activity, and continued deposit and loan growth, which partially offset the impact of lower interest rates.

"We delivered another solid quarter, with earnings per share up seven percent from last year," said Brian Moynihan, Chair and CEO. "Net interest income grew for the fourth straight quarter, reflecting eight consecutive quarters of deposit growth and seven percent year-over-year loan growth."

The Consumer Banking segment generated $3.0 billion in net income on revenue of $10.8 billion, up 6% YoY. Global Markets sales and trading revenue increased 14% to $5.3 billion, marking the 13th consecutive quarter of YoY growth.

"We believe our second quarter results underscore the strength of our balance sheet and help demonstrate that we are well-positioned to support the broader economy," said Alastair Borthwick, Chief Financial Officer.

The bank returned $7.3 billion to shareholders during the quarter and announced plans to increase its quarterly common stock dividend by 8% beginning in the third quarter.

Bank of America shares rose as much as 2.5% in premarket trading following the report.

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