Bank of America (BAC) stock is trending higher in pre-market trading despite reporting mixed results. BAC’s earnings exceeded expectations, but sales fell short for the second quarter of fiscal 2025. Earnings per share (EPS) of $0.89 surpassed the consensus estimate of $0.86 and came in higher than the prior-year quarter’s figure of $0.83. However, quarterly revenue rose 4% year-over-year to $26.46 billion, but missed the consensus estimate of $26.72 billion.
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Commenting on the results, CEO Brian Moynihan stated, “Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose.” He added that the bank reported a fourth consecutive quarter of net interest income (NII) growth and highlighted solid momentum in BAC’s Markets business.
Bank of America’s peers, JPMorgan (JPM), Citi (C), and Wells Fargo (WFC), surpassed both sales and EPS expectations for Q2. The trading desks of these institutions are benefiting from high market volatility amid shifting trade policies and heightened geopolitical tensions.
Here’s How Bank of America Performed in Q2
The bank’s NII increased 7% year-over-year to $14.67 billion, while non-interest income rose marginally to $11.79 billion. Meanwhile, provision for credit losses grew to $1.6 billion, up from $1.5 billion reported in Q2FY24.
Compared to the prior-year quarter, sales and trading revenue drove a significant increase in Global Markets revenue, which rose 14% to $5.98 billion. Consumer Banking revenue grew 6% to $10.81 billion, while Global Wealth and Investment Management revenue increased 7% to $5.94 billion.
Unfortunately, revenue in the Global Banking business declined 6% year-over-year to $5.69 billion, primarily due to lower NII, leasing revenue, and investment banking fees.
Is BAC Stock a Buy, Hold, or Sell?
Ahead of the Q2 print, Wall Street remained highly optimistic about Bank of America’s long-term prospects. On TipRanks, BAC stock has a Strong Buy consensus rating based on 14 Buys and three Hold ratings. Also, the average Bank of America price target of $51.18 implies 10.9% upside potential from current levels. Year-to-date, BAC stock has gained 6.3%.
It is worth noting that these ratings were issued before BAC announced its Q2 results and are subject to change once analysts review their recommendations.
