The US lender reported total revenues (after interest expense) of $22.7bn for the second quarter (Q2) this year, a 6% rise compared to $21.5bn for the same quarter the previous year
Bank of America pyramid-shaped building in San Antonio, Texas. (Credit: Billy Hathorn/Wikipedia)
Bank of America has reported a net income of $6.2bn, or $0.73 per diluted share, for the second quarter ended 30 June 2022, a 33% decline compared to $9.2bn, or $1.03 per diluted share, for the same period in 2021.
The US lender reported total revenues (after interest expense) of $22.7bn for the second quarter (Q2) this year, a 6% rise compared to $21.5bn for the same quarter the previous year.
The company reported a pre-tax income of $6.9bn for Q2 2022, a 14% decline compared to $8bn for the corresponding quarter in 2021.
The bank’s non-interest expenses for the reported period were $15.3bn, which increased by 2% compared to $15bn for the respective quarter in the prior year.
Bank of America chair and CEO Brian Moynihan said: “Our strong organic growth engine once again was evident in new account openings for checking, consumer investments, and small businesses, as well as net new Merrill and Private Bank households and new commercial banking customers.
“This solid client activity across our businesses, coupled with higher interest rates, drove strong net interest income growth and allowed us to perform well in a weakened capital markets environment. We grew revenue by 6% and delivered our fourth straight quarter of operating leverage.
“Our U.S. consumer clients remained resilient with continued strong deposit balances and spending levels. Loan growth continued across our franchise and our markets teams helped clients navigate significant volatility reflecting economic uncertainty.”
The Bank of America’s Consumer Banking unit reported a net income of $2.9bn for Q2 2022, a 3% decrease compared to $3bn for the same quarter the previous year
The company’s global wealth and investment management arm reported a net income of $1.2bn for Q2 2022, a 21% rise compared to $992m for the same period in 2021.
Its Global Banking business reported a net income of $1.5bn for Q2 2022, a 37% decline compared to $2.4bn for the corresponding quarter last year.
The company’s Global Markets division reported a net income of $1bn for Q2 2022, a 10% increase compared to $908m for the same period the previous year.
Bank of America chief financial officer Alastair Borthwick said: “Second quarter results once again demonstrate how our Responsible Growth strategy and diversified business model delivers for customers, clients, employees, shareholders and the communities we serve even in changing and challenging markets.
“Despite expenses recognised for certain regulatory matters in the quarter, we were able to hold expenses flat to the prior quarter, which included seasonally higher compensation expenses.”
Earlier this month, the US Consumer Financial Protection Bureau (CFPB) fined Bank of America $100m over misconduct related to the unemployment benefits during the Covid-19 pandemic.