Bank of America Jumps as Q2 Profit Surges 27% on Record Equities Trading

Bank of America shares climbed after the lender posted second-quarter earnings of $1.21 per share, beating consensus estimates of roughly $1.12. Profit surged 27% to $9.1 billion as revenue rose 15% year over year to $31.6 billion, ahead of the $30.67 billion analysts expected.

Equities trading was the standout, with revenue up 70% to $3.6 billion on robust client activity in derivatives and cash products. Net interest income climbed 9% to $16.2 billion, deposits grew for a twelfth consecutive quarter to $2.02 trillion, and return on tangible equity hit 17%. Management raised full-year operating leverage guidance to 300-400 basis points.

Analysts responded quickly: KBW lifted its price target to $70 from $67 with an Outperform rating, while UBS boosted its target to $68 from $63 and reiterated a Buy.