As for BAC's results, the company reported EPS of $0.62, beating consensus by $0.03. This marks the eighth straight quarter in which BAC has exceeded analysts’ bottom line estimates. On a growth basis, EPS surged by 51% and pretax income grew by 15% to $8.4 billion. BAC credits the growth here to improved operating leverage as revenue growth outpaced expense growth.
Revenue was up 4% to $23.1 billion, also ahead of the $23.04 billion consensus. Taking a look at BAC's segments, the growth was mainly led by a 9% increase in its consumer banking business as net interest income climbed by 13% due to higher interest rates and strong deposit (+6%) and loan growth.
In its Global Markets segment, revenue was up 2% and net income was up 12% to $1.5 billion. The standout area here was its performance in equity trading which saw a 38% spike in revenue due to strong client activity, particularly in derivatives markets. This was partially offset, however, by some softness in fixed income trading, down 13%, due to less favorable markets in credit-related products.
Another area of strength was the 7% bump in average loans in its Global Wealth and Investment Management business. This was BAC's 32nd consecutive quarter of average loan growth. The results here are primarily being driven by solid growth in mortgages.
All in all, BAC's results continue to illustrate that business is quite healthy, driven by rising interest rates, as well as strong equity and housing markets.