Bank of America's Q2 profits beat forecasts
By Duncan Ferris
Date: Wednesday 17 Jul 2019
(Sharecast News) - Bank of America reported second quarter profit growth on Wednesday that beat analysts' estimates as the banking giant's consumer banking division drove growth.
The New York-listed bank reported a second-quarter net profit of $7.3bn, an 8% increase from the year before, or 74 cents per share, which eclipsed the 71 cent estimate from analysts surveyed by Refinitiv.
Meanwhile, overall revenue matched analyst estimates to grow by 2.1% to reach $23.2bn.
The increase in profit came despite compressed lending margins, thanks to BofA's biggest division, its consumer bank, which saw profits increase by 13% to $3.3bn as revenue climbed 5% to $9.7bn as it added deposits and loans and enjoyed higher net interest income.
Average loans and leases in the division rose by 6% to $296.4bn, while deposits were up 3% at $707.0bn.
Profits at the smaller wealth management division were also in the ascendancy, rising by 11% to $1.1bn, though profits in its global markets and global banking divisions dropped by 7% to $1.1bn and 9% to $1.9bn, respectively.
Brian Moynihan, chairman and chief executive of BofA, said: "Our view of the economy reflects the activity by the one-in-two American households we serve, which points to a steadily growing economy. We see solid consumer activity across the board, with spending by Bank of America consumers up 5% this quarter over the second quarter of last year."
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