Bank of America's share price rose in early trading today after the lender reported higher revenues and profits than expected in the second quarter.
Net income rose to $6.8bn (£5.1bn), a rise of 33 per cent year-on-year and a full $600m higher than analysts had expected. While the higher profits were driven in part by tax cuts, pre-tax income also beat analyst expectations, coming in at $8.5bn.
The US banking giant's consumer banking operations have been boosted by higher interest rates from the Federal Reserve alongside consumer loan growth of five per cent.
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Revenues fell during the quarter by one per cent compared to 2017 to reach $22.8bn, although it still beat consensus analyst estimates. The revenue figures included a $793m gain from selling its non-US cards business.
Brian Moynihan, Bank of America's chairman and chief executive, said that the bank had experienced "solid operating leverage and client activity" while hailing "lower expenses again this period."
Non-interest costs fell by five per cent to $13.3bn, helping to drive shareholders' return on equity – a key measure of profitability – to 10.8 per cent, an increase of three percentage points.
Bank of America's global banking franchise, Merrill Lynch, saw profits rise by 16 per cent to $278m, although revenues fell by two per cent because of a worse investment banking fee performance and changes to rates on "certain tax-advantaged investments".
Trading revenues in Merrill Lynch's global markets arm rose by seven per cent to $4.2bn, with "higher sales and trading revenue" benefiting the bank. Trading profits rose by 34 per cent year-on-year.
Read more: Bank of America reports record first-quarter profits of $6.9bn
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