Bank of America Corp (NYSE:BAC) shares rose over 2% premarket on Tuesday after it reported a smaller fall in profit for the second quarter than expected.
Interest income dropped and it made more provisions for potential loan losses, however, earnings were better than Wall Street expected.
Earnings per share fell to $0.83 from $0.88 a year ago, but this topped the $0.80 consensus forecast, as revenues rose 1% to $25.4 billion, also beating estimates of $25.22 billion.
Revenue increased thanks to higher asset management and investment banking fees, as well as sales and trading revenue, offset by a 3% decline in net interest income as deposit costs increased more than loan growth.
Consumer banking revenues shrank 3%, jumped 29% at investment banking and 9% at global markets and trading, and increased 6% at global wealth.
Provisions for credit losses of $1.5 billion were made, up from $1.3 billion in the first quarter and $1.1 billion in the second quarter last year.
Chair and CEO Brian Moynihan called it "another strong quarter".
He said the earnings power of the consumer banking business was complemented by the growth and profitability of global markets, global banking, and wealth management businesses.
"Our Global Markets business delivered its ninth consecutive quarter of year-over-year revenue growth in sales and trading, earning double-digit returns. Our investments in this business are delivering for our shareholders.”