The second-largest U.S. bank saw a sharp increase in profits thanks to market volatility

Bank of America's profits rose significantly thanks to a surge in stock trading and transactions, according to its second-quarter report. Earnings per share increased by 34% to $1.21, compared with the $1.12 analysts had expected,

Bloombergreports.

BofA traders set a revenue record by capitalizing on market volatility, the agency notes. Revenue from equity trading soared 70% to $3.6 billion, exceeding Wall Street estimates. Revenue from fixed-income trading rose nearly 9% to $3.5 billion—a figure that also exceeded the consensus forecast. As a result, the sales and trading division posted record results for the first half of the year—it is precisely this business that BofA has been actively developing in recent years, the agency notes.

BofA’s results, like those of its competitors, were further bolstered by a boom in the investment banking business. Bank of America, along with Goldman Sachs and Morgan Stanley, served as one of the underwriters for the largest IPO in history—the SpaceX offering, which took place last month. BofA’s investment banking division generated $2.2 billion in fees in the second quarter—a 50% increase from the same period last year. Analysts had expected only $1.91 billion.

As a result, the bank's total revenue jumped 15% to $31.6 billion—$1 billion more than Wall Street had expected, according to LSEG data cited by CNBC .

Net interest income—that is, the difference between interest income on loans and interest paid on deposits—rose 9% to $16.2 billion, driven by activity in global markets as well as growth in loan and deposit volumes. The figure was virtually in line with the consensus forecast of analysts surveyed by StreetAccount, according to CNBC. Net interest income is one of the bank’s key sources of revenue.

The bank's financial metrics provide insight into how American consumers are coping with rising gas prices amid the war with Iran and market volatility caused by concerns over investments in artificial intelligence and problems in the private lending sector, Bloomberg notes.

Commercial lending is gaining momentum, Bank of America CEO Brian Moynihan assured. “Against the backdrop of a stable economy, consumers and businesses continue to rely on Bank of America for their everyday expenses, borrowing, and investments,” he said. Moynihan called the second quarter one of the most successful in the bank’s history.

Following the release of its quarterly report, BofA shares fell by about 1% in premarket trading. Over the past 12 months, they have risen 27%, while the S&P 500 Financials Index has gained 7.4%.

This article was AI-translated and verified by a human editor