Earnings Reports

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Bank of America (BAC) reported better than expected second-quarter earnings early Tuesday before the bell. $BAC saw a fall in trading but that was overcome by growth Consumer Banking, in its largest unit.

Banking major Bank of America (BAC), the second-largest US lender by assets, reported higher revenue and net income than consensus estimates in 2Q17, spurred by growth in its largest unit, Consumer Banking. Like the other major banks, JPM, C, WFC and PNC who reported on Friday the bank saw a fall in trading revenue. Though equities trading revenue gained 3%.

Earnings: EPS rose to 46 cents v Expected 43 cents on revenue of $22.8 billion higher than expected $21.915 billion. Fixed income trading revenue fell 14%, though that was slightly less than feared. Net interest income was $11 billion, slightly below some forecasts.

Reaction: Bank of America Corp NYSE: BAC Jul 18, 9:31 23.84 +0.18 (+0.75%) @ Market Open

Banking Segments

Trading: BAC said its sales and trading revenue was $3.2Bil in 2Q17, including negative net debit valuation adjustment of $159MM. Excluding net DVA, sales and trading revenue was down 9%YoY. The fixed income trading unit showed a decline of 14% during the quarter.

Consumer Banking: Revenue increased 9% to $8.5Bil in 2Q17.

Global Wealth and Investment Management: Revenue rose 6% to $4.7Bil and 7% to a record $5Bil in Global Banking. Global Markets were a negative with a revenue decline of 8% to $3.9Bil, driven by lower sales and trading results.

Note BAC Charts via AlphaStreet

Source: BAC, AlphaStreet

 

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