Bank of America Beats Q2 Expectations, Shares Gain

Shares of Bank of America Corp BAC surged around 3 percent in pre-market trading after the bank reported stronger-than-expected results for the second quarter. The Charlotte, North Carolina-based bank posted quarterly net income of $5.32 billion, or $0.45 per share, versus a year-ago profit of $2.29 billion, or $0.19 per share. Its revenue rose 1.8 percent to $22.35 billion from $21.96 billion. However, analysts were expecting earnings of $0.36 per share on revenue of $21.32 billion. The average estimate among 74 Estimize users was for earnings of $0.36 per share and revenue of $21.42 billion. Net interest income climbed to $10.72 billion, versus $10.23 billion in the year-ago quarter. Costs shrank 25 percent to $13.82 billion from $18.54 billion, while legal expenses slipped to $175 million compared to $4 billion in the year-ago quarter. Net income for Consumer Banking dropped 4 percent year-over-year to $1.7 billion, while Global Wealth and Investment Management posted net income of $690 million versus $726 million in the year-ago quarter. Global Banking posted net income of $1.3 billion in the quarter, while net income for Global Markets declined to $993 million from $1.1 billion. "We strengthened an already strong and highly liquid balance sheet this quarter," said Chief Financial Officer Bruce Thompson. "We improved capital and liquidity to record levels. Equally important, we put our balance sheet to work this quarter, growing core loan balances while maintaining strong risk underwriting." Bank of America shares gained 2.98 percent to $17.64 in pre-market trading.