Bank of America has surpassed expectations, reporting stronger-than-expected second-quarter earnings.
During the Q2 earnings announcement on Tuesday, the nation’s second-largest bank reported net income of $7.4 billion (+19%), earnings per share of $0.88 (+21%), and revenues of $25.2 billion (+11%).
Bank of America also earned $14.2 billion (+14%) in net interest income, which was primarily driven by “higher interest rates and loan growth,” according to a press release.
“We delivered one of the strongest quarters and first half net income periods in the company’s history,” said Bank of America Chairman and CEO Brian Moynihan.
“We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market,” Moynihan said.
All the bank’s businesses performed well, and the company saw improved market shares, a strong balance sheet, and ample liquidity to drive long-term value for stakeholders, he added.
Despite numerous worries of an impending banking collapse earlier this year, Bank of America was able to raise shareholder value from $0.73 per diluted share in Q2-2022 to $0.88 per diluted share in Q2-2023.
In total, Bank of America returned more than $2.3 billion to shareholders in the form of dividends and share repurchases, according to Chief Financial Officer Alastair Borthwick.
“Asset quality and the overall health of the U.S. consumer remained strong,” Borthwick said in the press release. “Total loss rates remained below pre-pandemic levels,” and “our balance sheet remained strong with $190 billion of regulatory capital.”
With a strong focus on top-line and bottom-line growth, as well as driving operating leverage, Borthwick noted that Bank of America was able to produce its eighth consecutive quarter of operating leverage.
In addition to strong net income, EPS, and revenue, the bank announced plans for a 9% increase in its quarterly common stock dividend for Q3-2023, subject to approval by the company’s board of directors.
Bank of America wasn’t the only financial institution to beat expectations this earnings season. Citigroup, Wells Fargo, Morgan Stanley, and JPMorgan have each reported earnings that surpassed analysts’ expectations.