Established in 1974
185,800 clients worldwide
Over 15,000 markets

Bank of America: Q2 earnings

Summary of Bank of America's earnings for its second quarter, following which shares went up 1.5% in the pre-market (12:06pm London time).

 

Revenue

Earnings per share

Expected

$21.6 billion $0.29

Actual

$21.75 billion $0.41

 

Bank of America was the unexpected standout of the big names, reporting a rise in its trading division instead of the expected fall.

Comparatives helped here, given that trading in the second quarter of 2013 was particularly weak, but Bank of America followed Citigroup’s lead in noting that June saw a pickup in activity.

Legal costs ate into profits, with litigation hitting $4 billion from $471 million, but the cost-saving efforts provided some relief. However, unlike Citigroup, Bank of America still has to settle with the Department of Justice, and this uncertainty will cloud the outlook.

Bank of America shares find themselves almost exactly where they started the year, around the $15.40 mark. The long trend looks under threat, although on a weekly basis the 20-week moving average is still above its 50-week counterpart. The drop through the 200-daily moving average will worry many, and until there is a close above $16 the shares may struggle to make upward progress.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.