Bank of America beat analysts' surplus estimates as it cuts expenses more than expected and achieved a 25% revenue growth in the Consumer Banking Division.
"US economic growth and consumer activity continue to be solid, businesses of all sizes borrows and runs the economy, and the activity is strong, Moynihan says in the release. "It was a challenging capital market environment, but our team and platform were optimized to serve customers and generate stable revenue across a range of market conditions over time."
The company's largest division, the consumer lending business, posted a 25% increase in profits to 3 , $ 2 billion. It managed to increase sales by 7% to $ 9.6 billion, while reducing costs by nearly $ 200 million.
It helped offset a weak quarter in its global market segment, with profits down 26% to $ 1 billion. Revenue fell 13% on weak trading results and lower investment bank fees. Income from equity trading fell by 22%, while interest rates fell by 8%.
The company's other two divisions gave positive results. The global banking business has posted a 2% increase in profits to $ 2 billion. The central government result increased by 14% to $ 1 billion.
Shares in the bank were almost unchanged in premarket trading after earlier dipping about 1%.
In his tenth-year-old Bank of America, the second largest US lender of assets, Moynihan has focused on methodical trimming of the cost while looking for profit opportunities that fit his "responsible growth" mantra.
More recently, he has announced that the company's success will be shared with employees: The bank raises its minimum wage to $ 20 an hour over the next two years, the highest rate among the megabanks.
To tighten the grip On banking customers in the retail market, Bank of America is also planning to release a digital financial trainer for its 66 million customers this fall.
The bank's shares have climbed more than 20% this year, exceeding most of their peers and the KBW Bank index.
This is what Wall Street expected:
Earnings: 66 cents per share, an increase of 5.7% from a year earlier, according to Refinitiv.
Revenue: $ 23.3 billion, almost unchanged from the previous year.
Noninterest expense: $ 13.7 billion, according to FactSet
Trading revenue: Fixed income $ 2.26 billion, shares $ 1.21 billion