Bank of America (BOA) released is second quarter financial earnings on Tuesday morning via an industry standard conference call. CEO Brian Moynihan and CFO Paul Donofrio delivered the remarks.
The bank reported a net income of $5.3 billion, which was a 10 percent increase. Earnings per share also increased at a rate of 12 percent, stopping at $0.46 per share. These numbers are in comparison to previously reported net income of $4.8 billion and an EPS of $0.41. Revenue was also on the rise at a rate of 7 percent, jumping from $21.3 billion to $22.8 billion.
Net interest income was reported to be $11.0 billion, an increase of 9 percent, which, according to the bank, is a reflection of the Fed’s increased interest rates and loan grown. Noninterest income was $11.8 billion, an increase of 6 percent. BOA attributes this to higher investment banking fees and the sale of the non-U.S. consumer credit card business.
In the realm if consumer banking, total active users on the bank’s mobile app jumped to 22.9 million, an increase of 13 percent, and Merrill Edge brokerage assets were up 21 percent. Loans, deposits, and net income were all up, at $18.6 billion, $56.3 billion, and $2 billion, respectively.
"Against modest economic growth of 2 percent, we had one of the strongest quarters in our history. All of our businesses delivered strong results, with several setting new records,” said Brian Moynihan, CEO of Bank of America. "The investments we made to transform how we serve clients produced 500 basis points of operating leverage in the quarter. We achieved our 60 percent efficiency ratio target, and we continued to manage credit risk carefully in line with responsible growth. This supports our plan to return $17 billion in capital during the next four quarters, including a 60 percent increase in the quarterly common dividend."
You can read the full quarterly report here.