Bank of America (BAC) reported double-digit growth in revenue and 澳洲幸运5官方开奖结果体彩网:net income in the second quarter on Tuesday, as higher interest rates boosted income it generated from lending money.

Why Does This Matter?

澳洲幸运5官方开奖结果体彩网:Monetary policy tightening by the Federal Reserve led to higher 澳洲幸运5官方开奖结果体彩网:net interest income (NII) for Bank of America. At $14.2 billion, the NII for the second-largest bank in the U.S. was up 14%🥂 compared to the second quarter of 2022. Another boost came from a growth in commercial loans and credit card loans.

Despite reporting double-digit growth, it may lack the punch rival JPMorgan Chase (JPM) delivered last week with a 67% jump in net income, driven by a 44% surge in net interest income.

Generally, banks have performed better than analysts' expectations this earnings season. Bank of America second quarter earnings per share was expected at 82 cents, according to YCharts estimates. However, it reported earnings of 88 cents per share, up from 73 cents per share in last year's second quarter, beating forecasts.

Bank of America shares were up about 4% in early trading on Tuesday following the news. However, since the beginning of the year, Bank of America's shares have fallen about 7.5% compared to a 19% gain for the S&P 500.

More Numbers

Overall, Bank of America's net income grew 19% to $7.4 billion, while revenue was up 11% to $25.2 billion.

Though the bank had lowered service charges and investment and brokerage fees, its non-inter𒊎est income grew by 8% to $11 billion, because of higher sales and trading revenue.

"We delivered one of the strongest quarters and first half net income periods in the company’s history," said the bank's chair and CEO, Brian Moynihan. Remaining positive about future growth, Moynihan added that he expected the job market to be resilient amid a healthy U.S. economy which is growing, albeit at a slower pace.

Going forward, the higher financing costs are expected to take a toll, along with the shift to work-from-home, stressing lending to commercial real estate, particularly office loan portfolios.