Bank of America faces 6% drop in profits

Bank of America announced this Tuesday mixed results for the second quarter of 2024, showing a net profits down 6.9% compared to the same period of the previous year. The company’s net profit stood at $6.9 billionequivalent to $0.83 per share, matching analysts’ expectations.

This decrease is mainly attributed to a 3% contraction in net interest income (NII).the main source of income for the financial institution. The NII reached $13.860 millionin line with estimates. Despite this decline, Bank of America projects a rebound in NII for the final quarter of the year, reaching around $14.5 billion.

However, the company experienced growth in other areas:

• Investment banking commissions: Increase of 29% to $1.56 billion.
• Asset management fees: Up 14% to $3.37 billion.
• Income from asset management: Growth of 6.3% to $5.57 billion.

In total, B’s incomeank of America increased by 1% to $25.54 billionbeating expectations of $25.22 billion.

El CEO de Bank of America, Brian Moynihan, He highlighted the strength and profit-generating capacity of the company’s consumer banking business, while highlighting the growth and profitability of its global markets, global banking and wealth management divisions.

Additional Reflections:

• The decline in loan interest income reflects the impact of a challenging economic environment.
• Growth in other business areas demonstrates Bank of America’s diversification.
• The company maintains a positive outlook for the remainder of the year, despite economic uncertainties.
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