Bank of America Corp. (BAC) - Get Report said second-quarter profit jumped as President Donald Trump's tax cuts boosted its bottom line, while the trading division posted better-than-expected results.
Net income rose 33% from a year earlier to $6.8 billion, the Charlotte-based bank said Monday, July 16, in a statement. Earnings per share were 63 cents, beating the average analyst estimate of 57 cents in a FactSet survey.
The tax windfall also padded profits for rival banks JPMorgan Chase & Co. (JPM) - Get Report and Citigroup Inc. (C) - Get Report in their earnings reports last week. But Bank of America also got help from its trading division, where revenue increased by 7% to $4.2 billion; the brokerage firm RBC Capital Markets had predicted a decline of 5.3%.
"Solid operating leverage and client activity drove earnings higher this quarter," Bank of America CEO Brian Moynihan said in the statement.
Income taxes totaled $1.71 billion, compared with $3.2 billion in the prior year period.