Bank of America's Q2 Earnings Beat EPS but Miss Revenue, Net Interest Income Growth Slows to $14.82B

Bank of America (NYSE: BAC) reported second-quarter earnings that landed with a bit of a thud in some areas and a shrug in others. The bank squeezed out a profit of $7.12 billion, or 89 cents per share, nudging past Wall Street's consensus of 86 cents. But when it came to revenue, the story flipped - $26.61 billion came in shy of the $26.72 billion expected, making BAC the only major U.S. bank to stumble on the top line this quarter.

A closer look reveals that Bank of America's net interest income (NII) didn't quite hit the bulls' marks, clocking in at $14.82 billion, missing estimates by $70 million. That's significant given how much pressure NII has been under lately. For those keeping score, NII represents the gap between what the bank pays depositors and earns from loans and investments - a crucial profit engine, especially when rates are fluctuating.

Still, BAC reported a 7% hike in NII compared to last quarter, marking the fourth straight rise. CEO Brian Moynihan highlighted this in his remarks, underscoring that the growth stemmed from continued deposit inflows and loan expansion, despite a backdrop of lower interest rates compared to the previous year.

Digging into the divisions, Bank of America's fixed income business outperformed expectations, pulling in $3.25 billion in revenue versus the forecasted $3.14 billion. Equities trading, meanwhile, fell just short, generating $2.13 billion. Investment banking fees dropped 9% year-over-year to $1.4 billion but still managed to beat the $1.27 billion estimate. So, some areas punched above their weight, others lagged a bit.

Bank of America's mixed bag contrasts with the better-than-expected results from fellow giants like JPMorgan, Citigroup, and Wells Fargo, who all posted stronger numbers in both earnings and revenue. Even Goldman Sachs and Morgan Stanley came through with beats, buoyed by aggressive trading desks.

Shares of BAC had clawed up nearly 5% in 2025 prior to this earnings dump, but this miss on revenue - despite the modest earnings beat - raises questions about whether the bank can maintain momentum, especially as interest rate shifts continue to test its margins.