Net interest income (NII) increased by $1.7 billion, or 14%, to $14.2 billion. Increase in NII driven primarily by benefits from higher interest rates and loan growth
Bank of America posted strong second quarter earnings.
Average loan and lease balances increased up by $32 billion i.e. 3%, to $1.0 trillion led by solid commercial loan growth as well as higher credit card balances
Revenue of the bank net of interest expense increased by 11% to $25.2 billion
Net income rose 19% to $7.4 billion
Net interest income (NII) increased by $1.7 billion, or 14%, to $14.2 billion. Increase in NII driven primarily by benefits from higher interest rates and loan growth
Provision for credit losses stood at $1.1 billion, led by an increase $602 million
Noninterest expense increased $765 million, or 5%, to $16.0 billion driven by investments in the franchise across people and technology, as well as higher FDIC expense.
Book value per common share rose 7% to $32.05
According to CEO Brian Moynihan, strong performance of the bank was led by client growth and positive impact of higher interest rates.
“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. We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market. All businesses performed well, and we saw improved market shares, particularly in our Sales and Trading and Investment Banking businesses. A strong balance sheet and ample liquidity allowed us to continue investments in our franchise to drive long-term value for stakeholders.”
Consumer Banking reported Net income of $2.9 billion , Global Wealth and Investment Management reported Net income of $978 million, Global Banking reported Net income of $2.7 billion and Global Markets reported Net income of $1.1 billion
According to Chief Financial Officer Alastair Borthwick: “Asset quality and the overall health of the U.S. consumer remained strong. Total loss rates remained below pre-pandemic levels. Our balance sheet remained strong with $190 billion of regulatory capital and a CET1 ratio nearly 120 basis points above our current minimum requirements. Capital strength allowed us to return more than $2.3 billion to shareholders in dividends and share repurchases, and we announced our plan to increase our quarterly common stock dividend by 9 percent in Q3-23, subject to approval by our Board of Directors. These results demonstrate the steadfast value of our responsible growth strategy.”
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