Bank of America reports Q2 earnings beat
Yahoo Finance Reporter Josh Schafer highlights the latest report and CEO Brian Moynihan's comments on consumers maintaining steady spending.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief: Market Sunrise here.
Breaking news. Bank of America just reporting second quarter earnings. The bank posted adjusted earnings per share of of 89 cents per share, higher than analyst expectations of 85 cents per share, and that and then revenue coming in at 26 and a half billion dollars. That's roughly in line with estimates. You can see on your screen now, stock rising in reaction up about two almost 2% at one point. Now up a little bit over 1%. I do want to highlight a quote from Bank of America CEO Brian Moynihan. He had some commentaries on the US consumer, saying quote, consumers remain resilient with healthy spending and asset quality, and commercial borrower utilizations rates rose. So a healthy consumer is what Bank of America is seeing here, and I want to get you a couple other key numbers within this release. So net interest income for the second quarter from Bank of America coming in at 14.67 billion. That was above estimates for 14.6 billion. So slightly above estimates there. A key metric, though, that seems to maybe be driving this stock higher right now, I want to look at trading revenue. Trading revenue in the second quarter for BofA coming in at 5.38 billion. The street was looking for 4.94 billion, so a pretty big beat on trading revenue there. Now remember, that was a story we had been following yesterday as well. Uh, city also going up higher yesterday on trading revenue, of course, this follows a relatively volatile market quarter for the second quarter in tariff reactions. So you're seeing the banks sort of benefiting from some of that. We'll be watching how that impacted Goldman Sachs and Morgan Stanley later on today. And then I also want to take a look at different sides of this stock move you're seeing right now. So Bank of America up almost 2% right now, but you're looking at that one-year chart stock. It only been up 10%. You flip over to JP Morgan's estimates from yet or earnings from yesterday, stock didn't really move well on relatively strong earnings, but stock had been up over 40% over the past year. So perhaps you're seeing a little bit of a difference there. A final number I want to bring you from BofA, looking at the second quarter, investment banking revenue coming in at 1.43 billion. That was above estimates slightly, and that was an interesting metric. Yeah, above estimates for 1.27 billion. Yesterday, remember, JP Morgan investment banking had been a key metric for them. Investment banking had come in higher than expected. We've been watching sort of as we delve into these releases, and certainly you'll be able to see this in Morgan Stanley and Goldman Sachs later this morning, how the pickup in the M&A market, pickup in the IPO market, might be impacting deal making and that part of the business. Overall, relatively solid report it seems from Bank of America. Market seems to be enjoying this one. Again, stock up almost 2%. We'll be keeping a close eye on that earnings call later this morning, and we'll be giving you more updates on the financial sector throughout the morning on our morning brief show later.
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