(Reuters) – The benefit of Bank of America (BOFA) in the second quarter exceeded expectations on Wednesday, carried by its trading activities in tumultuous markets, while the group’s net interest (RNI) income increased for the fourth consecutive quarter.
Large investment banks took advantage of the turbulence in the financial markets during the quarter, while customers react to the evolution of trade policies in the United States and the climbing of geopolitical tensions.
Sales and trading income jumped 15% to $ 5.4 billion (4.65 billion euros) over the period, marking a consecutive thirteenth of annual growth.
Bofa recorded a profit of $ 7.1 billion over the quarter, or 89 cents per share, compared to $ 6.9 billion and 83 cents per share a year ago, while analysts were tabling on a profit of 86 cents per share, according to LSEG data.
The uncertainties on the changing trade policy of US President Donald Trump, geopolitical tensions and high interest rates have largely slowed down the conclusion of mergers and acquisitions, although managers and analysts remain optimistic about a resumption in the second half.
The rate reductions decided last year by the American federal reserve helped to reduce the cost of deposits for banks, inflating their RNI, the difference between what the bank is gaining on loans and what it pays for deposits.
Bofa’s RNI increased by 7% to $ 14.7 billion and the group reaffirmed that its target of an RNI between $ 15.5 to 15.7 billion in the fourth quarter.
(Written by Pritam Biswas and Arasu Kannagi Basil in Bangalore and Nupur Anand in New York, Elena Smirnova, edited by Augustin Turpin)
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