Bank of America Q2 Earnings: EPS Beat Masks Revenue Shortfall

Bank of America delivered mixed second-quarter results, with earnings surpassing expectations while revenue fell slightly short. Adjusted EPS of $0.89 exceeded the $0.86 consensus, driven by a 3% increase in net income to $7.12 billion. The bank's revenue of $26.61 billion narrowly missed estimates of $26.72 billion, though net interest income reached a record $14.7 billion.

Sales and trading revenue jumped 15% to a Q2 high of $5.4 billion, offsetting a 9% decline in investment banking fees. Consumer banking revenue grew 6% year-over-year, while global wealth management posted a 7% gain. The bank's stock edged up 0.9% to $39.78 following the report, bringing its year-to-date increase to approximately 5%.

CFO Alastair Borthwick projected further net interest income growth, targeting $15.5-$15.7 billion by Q4. Loan portfolios expanded 7% to $1.13 trillion, demonstrating continued credit demand despite economic uncertainties. The results highlight Bank of America's resilient performance in a challenging interest rate environment.