Bank of America Second-Quarter Earnings Beat Expectations

Bank of America (BAC) posted better-than-expected second-quarter earnings on Wednesday, supported by double-digit growth in its consumer banking business, which was helped by rising demand for loans and growing deposits.

The Charlotte, NC-based bank reported total revenue of $23.08 billion in the three months ended June 30, up from $22.55 billion in the same quarter a year earlier. This was just below the consensus estimate of analysts polled by Capital IQ for $23.13 billion.

Feeding into the results was a 13% jump in net income at the consumer banking business to $3.3 billion. Loans within the unit were up 6% to $296 billion, deposits were up 3% to $707 billion and consumer investment assets were up 15% to $220 billion. The bank registered 27.8 million active mobile banking users.

Earnings per share came in at $0.74, up from $0.63 a year earlier and were ahead of the Street’s forecast for $0.71 per share.

“Our view of the economy reflects the activity by the one-in-two American households we serve, which points to a steadily growing economy,” said Brian Moynihan, chief executive of the lender. “We see solid consumer activity across the board, with spending by Bank of America consumers up 5% this quarter over the second quarter of last year.”

He added that the bank had also seen consistent borrowing and activity from its commercial and corporate clients.

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