Bank of America (BofA) reported stronger-than-expected second-quarter profits on July 16, fueled by robust trading activity spurred by market volatility and a significant rise in net interest income. The bank’s shares, up 5% year-to-date, saw a nearly 1% increase in pre-market trading. Similar to competitors like JPMorgan Chase and Citigroup, BofA capitalized on turbulent markets driven by shifting U.S. trade policies and geopolitical tensions.

CEO Brian Moynihan highlighted resilient consumer spending, strong asset quality, and increased commercial borrower activity. The bank’s sales and trading revenue soared 15% to a second-quarter record of $5.4 billion, marking 13 consecutive quarters of year-over-year growth. Equities trading revenue climbed 10%, a new high for the period, while fixed income, currencies, and commodities (FICC) revenue surged 19%. Chief Financial Officer Alastair Borthwick attributed the gains to clients repositioning portfolios amid geopolitical uncertainties, interest rate shifts, elections, and supply chain changes.

BofA’s profit reached $7.1 billion, or 89 cents per share, for the quarter ending June 30, up from $6.9 billion, or 83 cents per share, a year earlier, surpassing Wall Street’s estimate of 86 cents per share. The bank set aside $1.6 billion for credit losses, slightly up from $1.5 billion the previous year.

Net interest income (NII) hit a second-quarter record of $14.7 billion, a 7% increase, driven by lower deposit costs following Federal Reserve rate cuts, fixed-rate asset repricing, and growth in deposits and loans. On a fully-taxable equivalent basis, BofA achieved record NII and reaffirmed its forecast of $15.5 billion to $15.7 billion for the fourth quarter. Average loans and leases grew 7% to $1.13 trillion, with mid-single-digit loan growth expected in the second half of 2025.

However, investment banking fees fell 9% to $1.4 billion, trailing peers like JPMorgan (up 7%), Citigroup (up 13%), and Wells Fargo (up 9%). Uncertainty in April, driven by trade policy shifts, geopolitical tensions, and high interest rates, hampered dealmaking. Borthwick noted challenges in equity capital markets and M&A but expressed optimism about a rebound in activity in May and June, with a strong pipeline for the second half of 2025.

Despite its stock underperforming the KBW Bank Index and major rivals in 2025, BofA remains confident in its outlook, projecting continued growth in trading and investment banking as market conditions stabilize.