Bank of America: profit up thanks to consumer banking
(CercleFinance.com) - Bank of America reported a slightly higher quarterly profit in its consumer bank business, on the back of a "steadily growing economy".
The US lender on Wednesday posted a second-quarter net profit of 7.3 billion dollars, up just 0.5% compared to one year ago.
Still, earnings per share (EPS) grew seventeen per cent from the year-ago quarter, aided in part by the repurchase of seven percent of its shares in the past twelve months.
Revenue, net of interest expense, rose 2 percent to 23.1 billion dollars.
BofA said its consumer banking saw net income rise 13% to 3.3 billion dollars, while its trading unit - Global markets - made a net income of just 1 billion euros, down 7%.
Bank of America - which serves one-in-two American households - painted a rather upbeat picture of the US economy.
"We see solid consumer activity across the board, with spending by Bank of America consumers up five per cent this quarter over the second quarter of last year," the lender said.
Its shares were indicated 0.4% lower in pre-market trading.
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