CHARLOTTE, N.C.–Bank of America has become the latest of the nation’s big banks to report robust profits during the second quarter.
The bank credited rising interest rates and expanded lending for a profit of $7.4 billion in Q2, up nearly 20% from the year before. The increase came despite the fact the bank has boosted its reserves for bad loans.
Revenue grew more than 10%, to $25.2 billion in the second quarter, a figure larger than all but a few credit unions.
Bank of America holds nearly $2 trillion in customer deposits, but as consumers have moved funds in search of higher returns, it reported its average deposits in Q2 declined approximately 7% from a year earlier.
“The bank also continued to make progress on a goal it laid out this year: shrinking its head count through attrition,” noted the New York Times. “The bank, which had 288,000 employees in 2010, is down to about 213,000 (excluding summer interns), roughly 4,000 fewer than a quarter ago.’’
‘Resilient Job Market’
Added BofA’s CEO in a statement, “We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market,” he said.
The Bank of America profits numbers come as three of the country’s other largest banks reported making a cumulative $22.3 billion in profit during the quarter.
The largest bank in the U.S., JPMorgan Chase, posted $14.5 billion in profit, helped by growth virtually across the board, including increases in lending and credit-card transactions. Wells Fargo had $4.9 billion in profit, while Citi earned $2.9 billion in the quarter.
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