Bank of America reports revenue decline after weak Q2 results

Investing.com – Bank of America (NYSE:BAC) followed its Wall Street rivals on Wednesday and reported a strong performance in its consumer and business lending business in the second quarter, offset by a decline in revenue at its investment bank, reflecting the growing impact of trade disputes and a slowdown in financial market growth.

The company reported earnings per share of $0.74 on revenue of $23.08 billion. Analysts surveyed by Investing.com had forecast EPS of $0.71 on revenue of $23.12 billion.

The bank’s shares fell following the data, falling 0.3% to $28.90 at 7:10 a.m. ET (13:10 GMT) in pre-market trading, compared with $29.17 before the release.

Net interest income rose 3% on higher interest rates and growth in loan and deposit balances, but that confirmed a slowdown that CFO Paul Donofrio warned about in April. Net interest income rose 6% in 2018.

Brian Moynihan, president and CEO, said the results were the bank’s best quarterly and half-year profits in its history and the outlook showed a “steady economic growth.”

“We’re seeing solid consumer activity across the board, with Bank of America customer spending up 5% this quarter compared to the second quarter of last year,” he said.

These revenues follow a general pattern seen by rivals that released their reports this week.

J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) beat quarterly earnings estimates Tuesday but reported weaker net interest income, indicating rising deposit costs. Citigroup (NYSE:C) reported a decline in net interest margin Monday. Margins were squeezed as the spread between short- and long-term interest rates narrowed, limiting banks’ ability to invest customer deposits profitably. All the major banks also reported underlying declines in revenue from stock, bond and currency trading.

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