Bank of America on Wednesday posted profit that exceeded analysts’ expectations on strength in its sprawling retail bank.
The lender said it generated $7.3 billion in second-quarter profit, an 8% increase from a year earlier, or 74 cents a share, compared with the 71 cent estimate of analysts surveyed by Refinitiv. It reported revenue of $23.2 billion, a 2.1% increase from a year earlier, matching analysts’ estimate.
Shares in Bank of America rose 1.1% at 9:58 a.m. after earlier falling more than 1% in premarket trading.
Under CEO Brian Moynihan, the bank delivered record first-half profit, fueled by its retail lending operations and Moynihan’s expense initiatives. It was the 18th straight quarter the company has managed to improve operating leverage, meaning it has grown revenue while cutting or holding the line on costs.
“Our commitment to responsible growth resulted in the best quarter and first-half year of earnings in our company’s history,” Moynihan said in the earnings release….