Bank of America Q2 net income rises on higher trading activities

Bank of America Corp

Bank of America Corp

BAC

0.00


Overview

  • U.S. banking giant's Q2 net income rose 27% yr/yr, EPS up 34% yr/yr

  • Q2 revenue climbed 15% yr/yr to $31.6 bln, driven by higher net interest income

  • Company returned $8 bln to shareholders via dividends and share repurchases


Outlook

  • We are in a good position to serve our clients, deliver for our shareholders, and support a growing economy, says co


Result Drivers

  • HIGHER NET INTEREST INCOME - Co said Q2 revenue growth was driven by increased net interest income

  • STRONG ASSET MANAGEMENT & INVESTMENT FEES - Co said asset management and investment banking fees contributed to revenue growth

  • IMPROVED EFFICIENCY - Co said efficiency ratio improved to 59%, reflecting disciplined expense management

  • HIGHER TRADING REVENUE: Sales and trading revenue of $7.1 billion, incl. net debit valuation
    adjustment (DVA) losses of $57 million, jumps 33% incl. and excl. net DVA


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$1.21

Q2 Net Income

$9.10 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Bank of America Corp is $65.00, about 9.2% above its July 13 closing price of $59.50


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