Solid 2nd-Quarter Results for Bank of America

Narrow-moat

Consumer Banking performance was a major contributor to the strong performance in the quarter. The segment continued its steady, upward climb as net interest income was up 11% year over year, and noninterest income was up roughly 1.7%, with card income up over 7%. The most impressive number has been the expense control, with noninterest expense down year over year, supporting a consistently improving efficiency ratio. Brokerage assets also continued to climb for the segment, and deposits and loans were up as well, although loan growth was fairly limited at only 1.6% annualized for the quarter. With the bank continuing to invest in efficiency and technology gains, we would expect this segment to continue its improved performance over the medium term.

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