(Reuters) -Bank of America’s profit rose in the second quarter as its traders brought in more revenue from tumultuous markets in the second quarter, it said on Wednesday.
Banks’ trading desks benefited from market turbulence during the quarter as clients reacted to shifting U.S. trade policies and escalating geopolitical tensions.
BofA’s sales and trading revenue jumped 15% to $5.4 billion in the quarter, the 13th consecutive quarter of year-over-year revenue growth.
In trading, equities revenue surged 10%, while fixed income, currencies and commodities (FICC) revenue jumped 16% in the quarter.
The bank’s shares, which have gained 5% this year, rose 2.4% in trading before the bell.
“Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose. In addition, we saw good momentum in our markets businesses,” CEO Moynihan said in a statement.
Dealmaking has been largely stalled by uncertainty over U.S. President Donald Trump’s shifting trade policies, geopolitical tension and elevated interest rates.
BofA’s investment banking fees slid 9% to $1.4 billion in the second quarter.
However, banking executives and analysts have expressed optimism about the M&A pipeline and foresee more transactions in the second half of the year.
Investment banking fees rose 7% at JPMorgan, 13% at Citigroup and 9% at Wells Fargo.
BofA’s profit was $7.1 billion, or 89 cents per share, for the three months ended June 30, compared with $6.9 billion, or 83 cents per share, a year earlier.
(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru and Nupur Anand in New York; editing by Lananh Nguyen and Anil D’Silva)
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