Bank of America (BAC) Q2 2024 Earnings

• Earnings: 83 cents per share vs. 80 cents per share according to LSEG estimates
• Revenue: $25.54 billion vs. $25.22 billion estimated

The bank said profit fell 6.9 percent from a year earlier to $6.9 billion, or 83 cents a share, as the company’s net interest income fell amid higher interest rates. Revenue rose less than 1 percent to $25.54 billion.

The company was helped by a 29% jump in investment banking fees to $1.56 billion, beating StreetAccount’s estimate of $1.51 billion. Asset management fees rose 14% to $3.37 billion, helped by higher stock market values, helping the company’s wealth management division post a 6.3% increase in revenue to $5.57 billion, essentially matching estimates.

Net interest income fell 3% to $13.86 billion, also in line with Street Account estimates.

But new guidance on the measure, known as net income, has given investors confidence that a turnaround is coming. Net income is one of the main ways banks make money.

That measure, which represents the difference between what the bank earns on loans and what it pays depositors for their savings, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a presentation. Power pointNet interest income would bottom out in the second quarter, executives told investors in April.

Wells Fargo shares fell on Friday when it posted disappointing net income figures, showing how much investors are focusing on the metric.

Bank of America shares rose 2% in premarket trading, supported by the net income guidance.

Last week, JPMorgan Chase, Wells Fargo and Citigroup all beat expectations on revenue and earnings, a streak that continued on Monday by Goldman Sachs, helped by a rebound in Wall Street activity.

This story is under development. Please check back for updates.