Bank of America stock jumped Tuesday after the company topped Q2 earnings views, despite a profit dip. Financial firms PNC Financial Services, Morgan Stanley and State Street also reported Tuesday. STT broke
Bank of America reported a 5.7% earnings decline to 83 cents per share, just clearing FactSet views of 80 cents per share. Revenue, net of interest expense, rose 1% to $25.4 billion. The bank's revenue for the quarter beat analyst estimates of $25.22 billion.
Net interest income decreased 3% to $13.7 billion and Bank of America said its higher deposit costs more than offset higher asset yields and modest loan growth. On a fully taxable-equivalent (FTE) basis, Bank of America's net interest income was $13.9 billion for the quarter. Analysts polled by FactSet expected $13.83 billion in net interest income for the quarter.
Bank of America increased its provision for credit losses to $1.5 billion, up from the $1.3 billion set aside in Q1 and $1.1 billion last year, respectively.
The Charlotte, North Carolina-based bank guided FTE net interest income to reach $14.5 billion by Q4 2024.
Bank of America Stock
Bank of America stock jumped 5.4% Tuesday to mark a 31% gain for the year.
State Street leapt 7.5% Tuesday to break out above a 79.90 buy point for a flat base.
PNC stock swung 4.7% higher to extend out of a buy zone after its net income and revenue results beat views.
Morgan Stanley beat estimates with a 47% earnings increase on about 12% revenue growth. However, net interest income fell 17% for the quarter. MS stock rose a fraction to trade above a 103.25 buy point for a cup base.
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