Bank of America tops estimates on better-than-expected investment banking

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CEOs from left, Charles Scharf, Wells Fargo, Brian Moynihan, Bank of America, and Jamie Dimon, JPMorgan Chase, testify during the Senate Banking, Housing, and Urban Affairs Committee hearing titled “Annual Oversight of Wall Street Firms,” in Hart Building on Wednesday, December 6, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images

Bank of America is scheduled to report second-quarter earnings before the opening bell Tuesday.

Here’s what Wall Street expects:

  • Earnings: 80 cents a share, according to LSEG
  • Revenue: $25.22 billion, according to LSEG
  • Net Interest Income: $13.88 billion, FTE basis, according to StreetAccount
  • Provision for credit losses: $1.49 billion, according to StreetAccount

How is Bank of America navigating the interest rate environment?

That’s a key question after CEO Brian Moynihan told investors in April that net interest income would bottom in the second quarter.

The measure, known as NII, is the difference between what the bank earns on loans and what it pays depositors for their savings. It’s one of the main ways that banks earn money.

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

Last week, JPMorgan Chase, Wells Fargo and Citigroup each topped expectations for revenue and profit, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Street activity.

This story is developing. Please check back for updates.

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