Bank of America stock drops after profit beats expectations but revenue falls short

Referenced Symbols

Shares of Bank of America Corp. BAC, -4.58% dropped 2.2% in premarket trading Wednesday, after the moneycenter bank reported a second-quarter profit that rose above expectations but revenue fell short, weighed by misses in the consumer banking and global markets businesses. Net income nearly tripled to $8.96 billion, or $1.03 a share, from $3.28 billion, or 37 cents a share, in the year-ago period, to beat the FactSet consensus of 77 cents. Total revenue fell 4% to $21.5 billion, missing the FactSet consensus of $21.8 billion, as net interest income fell 6% to $10.2 billion to miss expectations of $10.4 billion. Consumer banking revenue grew 4.3% to $8.19 billion, below the FactSet consensus of $8.26 billion; global banking revenue was virtually flat at $5.09 billion to top expectations of $4.66 billion; global markets revenue dropped 11.8% to $4.72 billion, missing expectations of $4.76 billion. Fixed income, currencies and commodities revenue declined 38% to $2.0 billion while equities revenue grew 33% to 41.6 billion. "Consumer spending has significantly surpassed prepandemic levels, deposit growth is strong, and loan levels have begun to grow," said Chief Executive Brian Moynihan. The stock has rallied 31.5% year to date through Tuesday, while the S&P 500 SPX, +0.31% has gained 16.3%.

Read Next

Read Next

Barron's: Why Virgin Galactic Stock Tumbled the Day After Its Historic Launch

Virgin Galactic stock was up 217% in the two months before Sunday's flight to the edge of space.

More On MarketWatch

About the Author