Bank of America (BAC) Q2 2024 Results

Bank of America On Tuesday, the company said second-quarter revenue and profit beat expectations due to rising investment banking and asset management fees.

Here’s what the company reported:

• Profits: 83 cents per share versus LSEG’s estimate of 80 cents per share
• Revenue: $25.54 billion vs. $25.22 billion estimate

The bank said profit fell 6.9% from the same period a year earlier to $6.9 billion, or 83 cents a share, as the company’s net interest income declined amid higher interest rates. Revenue rose less than 1% to $25.54 billion.

The firm was helped by a 29% rise in investment banking fees to $1.56 billion, beating StreetAccount’s estimate of $1.51 billion. Asset management fees rose 14% to $3.37 billion, driven by higher stock market values, helping the firm’s wealth management division post a 6.3% rise in revenue to $5.57 billion, broadly in line with the estimate.

Net interest income fell 3% to $13.86 billion, also in line with StreetAccount’s estimate.

But new guidelines on the measure, known as NII, gave investors confidence that change is afoot. The NII is one of the main ways banks make money.

The measure, which is the difference between what a bank earns on loans and what it pays depositors for their savings, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a slide presentation.

This confirms what executives previously told investors, namely that net interest income would likely bottom out in the second quarter.

Wells Fargo shares fell on Friday after it reported disappointing NII figures, demonstrating just how obsessed investors are with the metric.

Bank of America shares rose 5.4%, helped by NII guidance.

Last week, JPMorgan Chase, Wells Fargo and Citigroup Each beat revenue and profit expectations, a streak that continued Goldman Sachs on Monday, helped by a rebound in activity on Wall Street.