Bank of America beats Q2 estimates with $1.21 EPS, 15% revenue jump

Bank of America reported Q2 earnings of $1.21 per share, beating estimates, as revenue rose 15% to $31.6 billion.

The results exceeded expectations across both top and bottom lines, with revenue growth accelerating from the 7% pace recorded in the prior quarter, the company said Tuesday. Analysts had expected revenue growth of about 11%, according to estimates compiled before the release.

Revenue of $31.6 billion compared with $30.37 billion in the fiscal first quarter and about $27.5 billion in the year-ago period. Net interest income and investment banking fees drove the outperformance, though the company did not disclose specific segment breakdowns or updated net interest margin figures. The bank's provision for credit losses and CET1 ratio were also not yet disclosed.

Shares of the Charlotte, North Carolina-based lender extended gains in Tuesday trading, rising alongside other bank stocks after Goldman Sachs posted an 8% jump following its own earnings beat. BAC traded at $59.67, up 0.71%, and has gained 6.8% over the past month, outperforming the broader financial sector. The S&P 500 rose 0.5% on Tuesday, supported by financials, as June CPI data came in below expectations, reducing odds of a Federal Reserve rate hike in July to 17% from 42% the prior day.

The beat shows that consumer banking demand remains resilient and that investment banking activity is recovering after a prolonged slump. Investors will watch for updated net interest margin guidance and loan growth data on the earnings call later Tuesday. The results also set a positive tone for other large US banks reporting this week, including JPMorgan Chase and Wells Fargo.

This article is for informational purposes only and does not constitute investment advice.