.July 16, 2024 01:04:00 PM

Bank of America (NYSE:BAC) exceeded earnings and revenue expectations for Q2, with an EPS of $0.83, beating the Street estimate of $0.80. Shares rose over 5% intra-day as a result. Quarterly revenue also surpassed forecasts, hitting $25.4 billion compared to the estimated $25.24 billion. However, net income dropped to $6.9 billion from $7.4 billion last year due to higher deposit costs and increased provisions for credit losses.

Revenue, excluding interest expense, increased by 1% year-over-year, driven by higher asset management and investment banking fees, as well as sales and trading revenue. Net interest income (NII) fell by 3% to $13.7 billion, as higher deposit costs offset gains from higher asset yields and modest loan growth. Noninterest expenses rose by 2% due to investments in personnel and revenue-related compensation.