(Reuters) – Bank of America Corp reported quarterly profit over expectations as the second largest US lender lowers costs and benefits from growth in loans and deposits on the back of an enhanced economy.
The Bank, like its other Wall Street smoother, is getting few an increase in recent years by regulators and politicians to lower tax rates and raise interest rates. But concerns about an escalating trade war between the United States and China have doubted future loan developments.
BofA's total loans increased by 2 percent during the quarter, with both consumer banking and management companies showing a growth of approximately 7 percent.
In comparison, JPMorgan Chase & Cos's core loans, which exclude consumer credits and loans to the largest companies, 7 percent. Citigroup Inc's total loans increased by 5 percent.
"Solid business growth and customer activity drove earnings higher in the quarter … We grew consumer and commercial loans; We grew in," says Chief Executive Officer Brian Moynihan in a statement.
Moynihan's efforts to cut costs and trim the bank's spreading business also pay, with non-interest expenses that drop 5 percent in the quarter.
The seventh year in its role, Moynihan has contributed much of the expenses arising from the financial crisis behind the bank.
BofA's shares increased by 1 percent in premarket trading.
Net income for common shares increased 36.3 percent to 6.47 billion dollars in the second quarter.
Excluding items earned 64 cents per share compared to the average 57 cents per share forecast, according to Thomson Reuters I / B / E / S.
Net interest income increased by 6 percent, as the bank's large deposit and interest-rate securities contributed to utilize four interest rate hikes during the past year.
Income after interest expenses decreased 1 percent to $ 22.76 billion. Revenues in the previous quarter included a $ 793 million advance on the sale of the bank's non-US consumer card business. Analysts had expected a turnover of 22.29 billion dollars.
Reporting of Sweta Singh in Bengaluru and Imani Moise in New York; Editing Saumyadeb Chakrabarty