Bank of America Corp. (NYSE: BAC) announced second quarter financial results. The company reported net income of USD 3.5 Billion or USD 0.37 per diluted share. Provision for credit losses rose to USD 5.1 Billion. Net interest income fell 11% to USD 10.8 Billion, primarily due to lower interest rates.
Chairman and CEO Brian Moynihan said, “In the most tumultuous period since the Great Depression, we delivered for our clients, our employees, our communities and our shareholders. “Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business, and our industry-leading digital capabilities allowed us to support clients amid difficult working conditions. “We provided billions in credit to clients; announced a $1 billion, four-year commitment to drive economic and racial equality in our communities; strengthened our balance sheet by increasing deposits, capital and loan loss reserves; invested in technology and equipment to help keep our employees safe; and delivered for shareholders, earning more than twice our quarterly dividend.”
Chief Financial Officer Paul Donofrio said, “We strengthened an already strong balance sheet by increasing capital and liquidity and growing deposits. While net charge-offs remained relatively low by historical standards, we added another $4 billion to credit reserves to reflect the current economic outlook. We ended the quarter with record deposits of $1.7 trillion, $242 billion in common equity, and $21 billion in credit reserves that we believe will allow us to continue to be a source of strength for our clients and communities. Our continued focus on Responsible Growth means we are well prepared for the current environment.”