Bank of America Profit Jumps 27% on Record Trading and Loan Growth

Bank of America reported second-quarter net income of $9.1 billion, up 27% from a year earlier, with diluted earnings per share of $1.21 — a 34% increase that beat the $1.12 consensus by 8%. Revenue climbed 15% to $31.6 billion, ahead of the $30.67 billion forecast.

Growth was broad-based: higher net interest income, strong investment banking fees, and record trading performance led the gains. Average deposits rose 8% to $652 billion, while average loans and leases grew 7% to $413 billion.

Management raised its full-year outlook, now expecting 300 to 400 basis points of operating leverage and net interest income growth at the upper end of its 6% to 8% range. Shares rose toward their 52-week high following the report.