- Bank of America Corp.
- 18 July 2022 12:41:32
Source: Sharecast
However, its consumer banking arm largely offset that weakness.
The lender's net interest income surged by $2.2bn or 22% over the three months ending on 30 June, driven by higher interest rates, lower premium amortisation and loan growth.
"This solid client activity across our businesses, coupled with higher interest rates, drove strong net interest income growth and allowed us to perform well in a weakened capital markets environment. We grew revenue 6% and delivered our fourth straight quarter of operating leverage," Moynihan said.
Total revenues net of interest expense grew by roughly 6% to $22.69bn (consensus: $22.7bn), but net profits dropped by nearly a third from a year ago to about $6.2bn or 73 US cents per share (consensus: $0.78).
Revenues in the remainder of BofA's units, Global Wealth and Investment Management, Global Banking, and Global Markets all came in below the consensus estimate.
Provisions for credit losses increased by $2.1bn to reach $523m and non-interest expenses by 2% to $15.3bn.
The rise in expenses included $425m "for certain regulatory matters", the lender said.
Pre-tax, pre-provsion income on the other hand improved from $6.4bn to $7.4bn.
As of 1238 BST, shares of Bank of America were dipping 0.31% to $32.15.