On Monday, Bank of America Corp (NYSE: BAC) announced the second quarter financial result. Stock price increased 2.93% to $14.06 during morning trading. The bank reported its quarterly result were continued dragged down by low interest rates, but a recover in bond trading helped earnings result beat expectations.
During the second quarter, Bank of America gained $3.87 billion, or earnings per share of $0.36, before dividends to preferred shareholders. This result decreased from $4.8 billion, or earnings per share of $0.43, in the same quarter last year. Analysts polled by FactSet Research Systems Inc. (NYSE: FDS) estimated Bank of America would earn $0.33 earnings per share during the second quarter.
Brian Moynihan, Chairman and CEO of Bank of America, commend, “We had another solid quarter in a challenging environment. Our responsible growth strategy led to improved customer and client activity, and each of our four business segments reported higher earnings than the year-ago quarter. We also moved closer to our longer-term performance targets. We continued to invest in core growth areas and to manage expenses, which were down 3 percent year over year to a level not seen since 2008.”
The trading business continued drag on big-bank earnings growth for years, but this time proved a surprising result. Excluding an accounting adjustment, Bank of America’s trading business revenue increased 12% to $3.7 billion compared with $3.32 billion in the same quarter last year. JPMorgan Chase & Co. (NYSE: JPM) announced a 23% increase in trading revenue last week, and Citigroup Inc. (NYSE: C) reported a 15% increase.
Commodity, currency and bond trading business revenue increased 22% to $2.62 billion compared with $2.14 billion in the same quarter last year. JPMorgan Chase and Citigroup also reported higher revenue in that unit. That was spurred by the uncertainty caused by the Brexit vote on June 23, which caused a mini-boom in trading fixed-income and currencies products in the final week of the quarter.