The second largest bank in the US in terms of assets – Bank of America Corp (NYSE: BAC) reported that the quarterly profit exceeded forecasts, as the bank's revenue grew in its three main divisions, compensating for the decline in trading volumes.
Bank of America's private customer service unit, the largest in the bank, showed the largest increase in profit and earnings in the second quarter.
The only trouble was the bank's business in the global markets, which speaks of a worldwide decline in bond trading, which had a devastating effect on many large banks over the past quarter.
"During a modest economic growth of 2%, we had one of the best quarters in history – all of our divisions showed good results, and some even broke records," said Brian Moynihan, the bank's executive director.
Bank of America, the most sensitive among all banks to the Fed's rate changes, was the winner after the regulator decided to raise the rate for the third time since the second quarter of last year.
Net interest income rose 8.6% to $ 10.99 billion in the second quarter.
The total revenue of the bank was $ 23.07 billion, slightly exceeding the forecasts of analysts at $21.78 billion.
Net profit rose 11% to $ 4.91 billion. Earnings per share were 46 cents, exceeding expectations at 43 cents.
Interest-free expenses of the bank grew by 1.7% to $ 13.73 billion.
The bank warned that the costs will rise in the second quarter, but confirmed the policy of reducing operating costs to $ 53 billion next year. Expenditures in 2016 amounted to almost $ 55 billion.
On Tuesday, Goldman Sachs (NYSE: GS), one of the world's largest investment banks, reported lower than expected revenues in its second quarter. As a result, Goldman Sachs shares fell in price.