Bank of America misses estimates with Q2 top-line growth
By Benjamin Chiou
Date: Wednesday 16 Jul 2025
(Sharecast News) - Bank of America delivered a stronger second quarter than last year, helped by healthy deposit growth and solid consumer spending, though revenues still came in slightly shy of analysts' forecasts.
BofA, the second-largest bank in the US behind JPMorgan Chase & Co, reported net income of $7.1bn for the second quarter, up 3% on last year. This equated to earnings of $0.89 a share, up 7% year-on-year and ahead of the $0.86 expected by the market.
Revenues were up 4% at $26.5bn, reflecting higher net interest income (NII), sales and trading revenue, and asset management fees, slightly offset by lower investment banking fees. However, analysts were expecting net revenues to come in closer to $26.7bn.
NII were 7% higher than last year at $14.7bn - the fourth straight quarter of NII growth but also around $70m below analysts' estimates - due to fixed-rate asset repricing, higher NII related to activity in the Global Markets division, and deposit and loan growth, which were able to outweigh the negative impact of lower interest rates.
"We delivered another solid quarter," said chair and chief executive Brian Moynihan. "Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilisation rates rose. In addition, we saw good momentum in our markets businesses."
In the Consumer Banking division, revenues were up 6% at $10.8bn, with growth in average deposits, average loans and leases, and higher combined credit and debit card spend. The company also added 175,000 new consumer checking accounts during the period.
Wealth and Investment Management revenues rose 7% to $5.9bn and markets revenues were up 14% at $5.3bn, while BofA recorded a 9% fall in investment banking fees to $1.4bn.
The stock was 0.9% lower at $45.73 by 1028 ET.
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