Bank of America profit jumps 27% amid commercial loan growth and 'strong consumer spending'

Bank of America (BAC) stock rose 2% on Tuesday after the bank's profit jumped 27% last quarter to $9.1 bilion, with net income growth across every business segment. Management pointed to a healthy economic backdrop, broadening consumer loans, and resilient consumers. "The U.S. economy has proved more durable than expected, supported by the strong consumer, ongoing AI-driven investments across the board, and easing energy costs," CEO Brian Moynihan said during the bank's earnings call. "We continue to see strong consumer spending," he added later in the call. Earnings per share jumped 34% year-over-year, driven by commercial loan growth beyond artificial intelligence. "Whether it's business banking, the commercial bank, or the corporate bank, they're all contributing. It's very broad-based loan growth at this point," said Alastair Borthwick, CFO of BofA . (BAC ) Go deeper with AlphaSpace 60.55 +1.01 (+1.70%) As of 9:55:13 AM EDT. Market Open. Bank of America's net interest income, the profit made from loans minus interest paid to depositors, hit $16 billion, topping the Bloomberg consensus estimate of $15.92 billion. Management sees NII guidance for the full year at the upper end of a 6% to 8% range, which Wall Street analysts on the call viewed as conservative. "We're just up against tougher comps. That's all," said Borthwick. Bank of America's stock-trading revenue jumped 70% to $3.62 billion, smashing Wall Street consensus by nearly $1 billion, driven by increased client activity and strong trading performance, particularly in Asia and the US. The results echoed those of Wells Fargo (WFC), which also exceeded analysts' expectations for its second quarter earnings, boosted by a 13% year-over-year increase in revenue from its wealth management and investment banking businesses. Consumer banking and lending revenue grew 6% year-over year, as did commercial banking revenue. "We are clearly benefitting from the broad-based economic strength we see in the US, but the investments we are making and our improved operating discipline also drove strong momentum in our key business metrics across all operating segments," CEO Charlie Scharf said in the statement. Citigroup (C) also beat estimates on Tuesday, with net interest income of $17.13 billion versus estimates of $16.01 billion. Second-quarter equities sales and trading revenue jumped to $2.3 billion, coming in above expectations of $1.98 billion. Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities. Click here for in-depth analysis of the latest stock market news and events moving stock prices Read the latest financial and business news from Yahoo Finance View Comments