Bank of America has reported net income of $6.8bn, an increase of 33%, for the second quarter of 2018compared to $5.1bn for the same period last year.
Image: Bank of America has reported net income of $6.8bn for Q2. Photo: courtesy of Bank of America.
Revenue, net of interest expense, decreased 1% to $22.6bn, compared to $22.8bn reported in the year-ago period’s quarter.
Net interest income (NII) saw a 6% growth to $11.7bn, while noninterest income decreased 7% to $11bn for the second quarter ended 30 June 2018.
Net income of consumer banking segment increased 42% to $2.9bn in Q2, and revenue grew 8% to $9.2bn.
Global Wealth and Investment Management’s net income increased 20% to $968m, and global banking’s net income grew 16% to $2.1bn.
The US bank said its average deposits grew 8% to $323bn, and average loans and leases increased 3% to $355bn.
Bank of America said consistent results have enabled it to increase its dividend by 25% starting in the third quarter. In the next 12 months, the bank plans to return $26bn to shareholders via common dividends and share repurchases.
Bank of America chairman and CEO Brian Moynihan said better operating leverage and client activity drove earnings higher this quarter.
Moynihan said: “We grew consumer and commercial loans; we grew deposits; we grew assets within our Merrill Edge business; we generated more net new households in Merrill Lynch; and we supported more institutional client activity — all of this while we continued to invest in our businesses and began an additional $500 million technology investment, which we intend to spend over the next several quarters, due to the benefits we received from tax reform.”
Bank of America serves nearly 47 million consumer and small business relationships with about 4,400 retail financial centers, around 16,100 ATMs, and a digital banking with approximately 36 million active users, including 25 million mobile users.