- Bank of America (NYSE:BAC) gains 0.74% in premarket trading after reporting Q2 EPS 63 cents vs 44 cents Y/Y.
- Q2 net charge-offs $996M vs $908M Y/Y, driven mostly by higher losses in the consumer credit card portfolio due to seasoning, loan growth and storm-related losses.
- Starts additional $500m investment in technology to be spend over next several quarters, citing benefits of tax reform.
- Q2 consumer banking: revenue $9.21B vs. $8.51B Y/Y; Merrill Edge brokerage assets up 20%; provision for credit losses $944M vs. $834M; net income $2.88B vs. $2.03B Y/Y.
- U.S. consumer credit card: average credit card outstanding balances $93.5B vs $94.4B in Q1; total credit/debit spend $147.5B vs $137.4B Q/Q; risk-adjusted margin 8.1% vs. 8.3% Q/Q.
- Global wealth and investment management: revenue (FTE) $4.71B vs $4.70B Y/Y; AUM flows $10.8B fs $27.5B Y/Y; net income $968M vs $804M Y/Y.
- Global banking: total revenue (FTE) $4.92B vs $5.04B Y/Y; average deposits $323.2B vs $300.5B Y/Y; net income $2.06B vs $1.79B.
- Global markets: revenue (FTE) $4.22B vs $3.95B Y/Y; average total assets $678.5B vs $678.4B in Q1 and $645.2B a year ago; average trading-related assets $473.1B vs $463.2B in Q1 and $452.6B a year ago; net income $1.12B vs $830M Y/Y; net income excluding DVA $1.25B vs $929M Y/Y.
- Previously: Bank of America beats by $0.06, beats on revenue (July 16)
- Now read: JPMorgan (NYSE:JPM): Another Beautiful Quarter
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