Bank of America reported a net income of $6.9 billion, or $0.83 per diluted share for the second quarter of 2024, compared to $7.4 billion, or $0.88 per diluted share in the same period last year. Revenue, net of interest expense, amounted to $25.4 billion, showing a 1% increase from the year-ago quarter. This increase was driven by higher asset management and investment banking fees, as well as sales and trading revenue, partially offset by lower net interest income.
The provision for credit losses rose to $1.5 billion from $1.3 billion in the previous quarter and $1.1 billion in the second quarter of 2023. Additionally, noninterest expense increased to $16.3 billion, up 2% from the same period last year, primarily due to investments in people and revenue-related compensation.
The average deposit balances grew by 2% to $1.91 trillion, while average loans and leases increased modestly compared to the second quarter of 2023. The common equity tier 1 (CET1) capital reached $198 billion, up $1 billion from the previous quarter, with a CET1 ratio of 11.9%, surpassing the new regulatory minimum.
In terms of shareholder returns, the company returned $5.4 billion, with $1.9 billion through common stock dividends and $3.5 billion in share repurchases. Book value per common share rose 7% to $34.39, and tangible book value per common share rose 9% to $25.37. The return on average common shareholders' equity (ROE) ratio was 10.0%, and the return on average tangible common shareholders' equity (ROTCE) ratio stood at 13.6%.
The bank's global markets business delivered its ninth consecutive quarter of year-over-year revenue growth in sales and trading, earning double-digit returns. Moreover, the global wealth and investment management business achieved record client balances of more than $4 trillion, representing a 10% increase, driven by higher market valuations and positive net client flows.
In consumer banking, Bank of America added approximately 278,000 net new consumer checking accounts in the second quarter of 2024, marking the 22nd consecutive quarter of growth. The bank also reported record consumer investment assets of $476 billion, reflecting a 23% increase, including $38 billion of net client flows since the second quarter of 2023.
Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $41.89. If you want to know more, read the company's complete 8-K report here.
