Bank of America $BAC reported second-quarter net income of $9.1 billion, up 27% from a year earlier, as a record quarter for its stock-trading desk and a rebound in dealmaking drove revenue to $31.6 billion, up 15%.
Diluted earnings per share came in at $1.21, up 34% from the year-ago quarter. Analysts had expected earnings per share of $1.13 and revenue of $30.8 billion, according to Barron's.
The bank's Global Markets division was the standout performer. Equities trading revenue surged 70% to $3.6 billion, with the bank citing robust client activity and gains in both derivatives and cash products. Fixed-income, currencies and commodities revenue rose 9% to $3.5 billion. Combined, total sales and trading revenue reached $7.1 billion, up 33% year over year, marking the 17th consecutive quarter of year-over-year growth.
Investment banking also contributed to the quarter's strength. Total investment banking fees, excluding self-led deals, rose 50% to $2.1 billion, reflecting gains across debt underwriting, advisory and equity underwriting, the company said.
Net interest income, which captures the spread between what the bank collects on loans and what it pays out to depositors, increased 9% to $16 billion.
"Every business segment reported double digit net income growth and strong returns on equity," Chief Executive Officer Brian Moynihan said in a statement. "Near-term, pipelines remain strong, and commercial borrowing has picked up."
All four of the bank's business segments posted higher net income. Consumer Banking earned $3.3 billion, up from $3.0 billion a year earlier, on revenue of $11.3 billion. Global Wealth and Investment Management posted net income of $1.4 billion on revenue of $6.9 billion, up 16%, as client balances reached $4.9 trillion. Global Banking earned $2.0 billion, and Global Markets contributed $2.6 billion.
Credit quality continued to improve. The provision for credit losses fell to $1.4 billion from $1.6 billion in the second quarter of 2025, and the net charge-off ratio dropped to 0.47% from 0.55% a year earlier, the company said.
The bank returned $8 billion to shareholders during the quarter through dividends and stock repurchases. Book value per common share rose 7% to $39.34.
Bank of America shares fell before the opening bell on Tuesday even as the quarter's results came in ahead of analyst expectations, according to MarketWatch.