Bank of America Clocks 19% Q2 Net Income Growth: Performance By The Numbers

Bank of America Corp BAC shares are up Tuesday morning following its second-quarter results that surpassed the Street view.

BAC reported a second-quarter FY23 net income growth of 19% year-over-year to $7.4 billion. EPS for the quarter was $0.88, compared to $0.73 in 2Q22, beating the consensus of $0.84.

Revenue increased 11% Y/Y to $25.33 billion, beating the consensus of $25.05 billion.

Segment Net income: Consumer Banking $2.9 billion (-1% Y/Y), Global Wealth and Investment Management $978 million (-15% Y/Y), Global Banking $2.7 billion (+76% Y/Y), and Global Markets $1.1 billion (+9% Y/Y).

Q2 Net interest income was $14.2 billion (+14% Y/Y), driven primarily by benefits from higher interest rates and solid loan growth. Noninterest income was $11 billion (+8% Y/Y).

Provision for credit losses $1.13 billion, compared to $523 million in Q2 FY22.

The efficiency ratio for the quarter was 63.3%, compared to 67% in Q2 FY22.

The bank reported a CET1 ratio of 11.6%, up 110 bps from a year ago. Book value per share of $32.05 improved by 7.3%.

Average loan and lease balance up $32 billion (+3% Y/Y) to $1 trillion, led by solid commercial loan growth and higher credit card balances. Average deposits are down 7% Y/Y to $1.9 trillion.

Price Action: BAC shares are trading higher by 0.51% at $29.55 premarket on the last check Tuesday.