(New York) The activity of the American bank Bank of America, the second largest bank in the United States by the size of the assets, has again benefited from the successive interest rate hikes practiced by the Fed.
Like the other major American banks, the institution recorded a jump in its turnover in the second quarter driven by the ten key rate hikes made since March 2022. It swelled by 11% to 25.2 billion of dollars.
Net profit was $7.4 billion, up 19%. Adjusted per share, it stands at $0.88.
Performances that exceed the consensus of analysts prepared by FactSet.
“We achieved one of the strongest quarterly and semi-annual results in company history,” said Brian Moynihan, head of Bank of America, in a statement.
“Continued organic customer growth and customer activity across all lines of business accompanied the beneficial effects of higher interest rates,” he said.
As a result, net interest income (the difference between interest earned on loans made to customers and interest paid to savers and creditors) grew 14% to $14.2 billion.
Without providing a forecast for the next few months, Moynihan noted that the group continues “to see a healthy US economy growing at a slower pace, with a resilient labor market.”
Alastair Borthwick, Chief Financial Officer, agreed, “Asset quality and overall US consumer well-being remain strong.”
Confidence in the “strength” of its capital that allowed the bank to announce on Friday the payment in the third quarter of a dividend to preferred shares. In the second quarter, it returned $2.3 billion to shareholders in dividends and share buybacks.