Bank of America posts Global Markets income of $1.1bn for Q2 2023, up 9% Y/Y

Bank of America Corp (NYSE:BAC) has just released its financial report for the second quarter of 2023.

Across all segments, net income rose 19% year-on-year to $7.4billion,or $0.88 per diluted share, compared to $6.2 billion, or $0.73 per diluted share for the second quarter of 2022.

Revenue, net of interest expense, increased 11% to $25.2 billion.

Global Markets net income amounted to $1.1 billion, up 9% (or $88 million) from the year-ago quarter. Excluding net DVA, net income of $1.2 billion increased 32%.

The Global Markets segment generated revenue of $4.9 billion in the second quarter of 2023, an increase of 8%, driven primarily by higher sales and trading revenue and the absence of mark-to-market losses related to leveraged finance positions in Q2-22.

Sales and trading revenue of $4.3 billion increased 3%.

Fixed income, currencies, and commodities (FICC) revenue increased 7%, to $2.7 billion, driven by strong trading performance in currencies, emerging markets interest rates, and secured financing, as well as improved trading in credit and mortgage products, partially offset by weakness in commodities.

Equities revenue decreased 2%, to $1.6 billion, due primarily to weaker trading performance in derivatives, partially offset by an increase in client financing activities.

Chief Financial Officer Alastair Borthwick commented:

“Our focus remains on growing our businesses organically by deepening existing client relationships, establishing new relationships, and driving operating leverage. We did that again in the second quarter, producing our eighth consecutive quarter of operating leverage. We delivered strong top line and bottom line growth with net income growing 19 percent from Q2-22.

Asset quality and the overall health of the U.S. consumer remained strong. Total loss rates remained below pre-pandemic levels. Our balance sheet remained strong with $190 billion of regulatory capital and a CET1 ratio nearly 120 basis points above our current minimum requirements. Capital strength allowed us to return more than $2.3 billion to shareholders in dividends and share repurchases, and we announced our plan to increase our quarterly common stock dividend by 9 percent in Q3-23, subject to approval by our Board of Directors. These results demonstrate the steadfast value of our responsible growth strategy.”