Bank of America (NYSE:BAC) swung to a profit in the second quarter.
Earnings and Revenue The company posted an EPS above analyst expectations, though revenues fell short of predictions. The company reported EPS of 19 cents a share versus the 15 cents a share estimate and revenues of $22.2 billion versus the $22.87 billion estimate. The estimates of 22 analysts ranged from profit of 3 cents to profit of 23 cents.
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The company's profit for the quarter was $2.46 billion. Revenue climbed 16.3% from $19.08 billion in the same period last year.
Company Fundamental Trends The company's revenue rose last quarter after falling 17.7% to $26.93 billion in the first quarter.
History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of 31 cents versus a mean estimate of net income of 13 cents per share.
Official Comment: "In a challenging global economy, we still see opportunities to do more with our customers and clients. Lending to commercial businesses increased for the sixth straight quarter -- with small business lending and commitments up 23 percent in a year -- and consumer credit is in the best shape in years," said Brian Moynihan, chief executive officer. "This quarter we surpassed 10 million mobile banking customers, up 34 percent in a year. With about 45,000 new mobile customers a week, we are adapting to meet customer needs and to do more with them." "Once again, we had strong capital generation this quarter through a combination of earnings growth and a reduction in risk-weighted assets," said Chief Financial Officer Bruce Thompson. "In one year, our Tier one common capital ratios have gone from being the lowest of the major U.S. banks to among the highest, and we've maintained our strong liquidity levels even as we reduced our long-term debt by $125 billion."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.