NEW YORK (AFP) – Bank of America reported a 70.2 percent increase in second quarter profits on Wednesday, fueled by strong trading and wealth management returns and better credit quality.
Earnings at the U.S. giant came in at $3.6 billion on revenues of $22.7 billion, up from $2.1 billion on $22 billion in revenues a year earlier.
The results translated into profits of 32 cents per share, well above the 25 cents per share expected by analysts.
Earnings were particularly strong in global wealth and investment management, rising 38 percent to $758 million. Bank of America cited higher asset management fees and client deposit inflows.
The other main area of strength was global markets, where equities sales and trading revenue rose to enable the division to nearly double profits at $959 million.
At the same time, the bank warned that currency, fixed income and commodity trading was dragged down towards the end of the quarter by interest rate volatility following the June policy announcement by the U.S. Federal Reserve.
Credit quality continued to improve, with the bank saying the number of delinquent loans declined across all major consumer portfolios. The provision for credit losses was $1.2 billion, a decline of $562 million.Click here for reuse options!
Copyright 2013 The National Memo