Topline: Another major U.S. bank beat earnings expectations on Tuesday, showing that despite ongoing tariff pressures, interest rate cuts and slowing trading revenues, Wall Street had a solid quarter.
- Bank of America reported profit and revenue that came in higher than analyst estimates—with a net income of $0.56 per share compared to $0.51 expected—thanks to strong consumer and advisory businesses that helped counter declining trading revenues.
- Shares of Bank of America rose over 2% in early trading; the stock has now risen almost 17% so far this year.
- The bank is the second-biggest lender in the U.S., making it especially sensitive to interest rate cuts—but despite the Federal Reserve’s recent slashing of rates, Bank of America grew loans by 7%.
- Three out of four of the bank’s main divisions saw revenue gains: an 8% increase in its global banking business, a 3% increase on consumer banking revenue and a 2% increase in wealth management revenue.
- While revenue fell 2% in the bank’s trading division, total company revenue was largely unchanged from a year earlier at $23 billion, beating analysts’ $22.8 billion estimate.
Tangent: Bank of America is one of billionaire investor Warren Buffett’s favorite stocks. Through his holding company, Berkshire Hathaway, Buffett recently asked the Fed for permission to raise his stake beyond 10%, according to a Bloomberg report.
Crucial quote: “In a moderately growing economy, we focused on driving those things that are controllable,” CEO Brian Moynihan said in a press release.
I am a New York—based reporter for Forbes, covering breaking news—with a focus on financial topics. Previously, I’ve reported at Money Magazine, The Villager NYC, and The East Hampton Star. I graduated from the University of St Andrews in 2018, majoring in International Relations and Modern History. Follow me on Twitter @skleb1234 or email me at firstname.lastname@example.org