Bank of America (BAC) Delivered Mixed Q2 Results

Bank of America Corp (NYSE:BAC) traces its roots back to 1904 when an Italian immigrant named Amadeo Giannini established the Bank of Italy in San Francisco. His bank started offering loans to immigrants, working-class Americans, and farmers, who were usually refused by major financial institutions of that time. Over the years, the bank grew by expansion and acquisitions. Today, Bank of America is one of the world’s biggest financial institutions, offering a suite of financial services to individuals, small businesses, and big enterprises.

The Charlotte, North Carolina-based bank recently announced mixed financial results for the second quarter. BAC reported earnings of $1.03 per share for the three months ended June 30, well above 37 cents per share in the comparable period of 2020. Q2 earnings easily surpassed the consensus forecast of 77 cents per share.

However, revenue for the quarter slipped 4 percent on a year-over-year basis to $21.5 billion, missing analysts’ average estimate of $21.8 billion. In addition, net interest income also fell 6 percent to $10.2 billion.

If we look at the performance of key divisions, global markets revenue plummeted nearly 12 percent to $4.72 billion, while global baking revenue was almost flat at $5.09 billion. On the bright side, consumer banking revenue rose 4.3 percent to $8.19 billion.

Speaking on the results, CEO Brian Moynihan said in a statement, “We delivered solid earnings and returned more capital to shareholders during the quarter as we moved to a more open economy. Our team continued to do a great job serving clients, as shown by the increased levels of client activity across all of our businesses. More than 85% of our buildings and offices are open, and we’re welcoming our teammates back. This means more face-to-face meetings; helping to increase sales of Consumer products and drive strong household growth in Wealth Management, and increased prospect calling in Commercial Banking.”

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