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.

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