Q2 2024 Bank of America Corp Earnings Call Transcript
Key Points
- Bank of America Corp (BAC) reported a net income of $6.9 billion after tax, or $0.83 in diluted EPS for Q2 2024.
- Revenue grew year-over-year, driven by a 6% increase in fees, which represented 46% of total revenue.
- Strong performance in wealth management with a 14% improvement in asset management fees and a 29% increase in investment banking fees.
- Continued digital growth with 47 million active users on the consumer mobile banking app and 23 million consumers using Zelle.
- Maintained a strong capital position with a CET1 ratio of 11.9%, supporting loan growth, share repurchases, and dividends.
- Net interest income (NII) declined this quarter, although it is expected to grow in the latter half of the year.
- Consumer net charge-offs increased to 59 basis points, the highest since 2014.
- Commercial real estate exposure remains a concern, although there was a decrease in reservable criticized loans and net charge-offs.
- Expenses grew by 2% year-over-year, driven by higher incentives in wealth management.
- The net interest margin (NIM) remains low at 1.93%, indicating under-earning compared to historical levels.
Good day, everyone and welcome to the Bank of America earnings announcement. (Operator Instructions) Please note this call may be recorded. I'll be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Lee McEntire of Bank of America.
Good morning. Welcome. Thank you for joining the call to review our second quarter results. Our earnings release documents are available on the Investor Relations section of the bankofamerica.com website, and they include the earnings presentation that we will make reference to during the call. I hope everyone has had a chance review those documents. Our CEO, Brian Moynihan will make some opening comments before Alastair Borthwick, our CFO discusses the details of the quarter.
Let me just remind you that we may make forward-looking statements and refer to non-GAAP financial measures during the call. Forward looking statements are based on management's current expectations and assumptions
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