“More than 85% of our buildings and offices are open, and we’re welcoming our teammates back,” Moynihan said. “This means more face-to-face meetings, helping to increase sales of consumer products and drive strong household growth in wealth management, and increased prospect calling in commercial banking. Consumer spending has significantly surpassed pre-pandemic levels, deposit growth is strong, and loan levels have begun to grow.”
Still, its revenues dropped 4% to $21.5 billion and missed analysts’ revenue predictions of $21.8 billion. BofA chief financial officer Paul Donofrio cited the “continued challenge of low-interest rates” as the reason for the decline, with the bank’s net interest income falling 6% to $10.23 billion in the second quarter.
While rates hover at record lows, Donofrio pointed to signs that BofA’s lending is improving. Total loans and leases grew 2% from $903.09 billion in the first quarter to $918.93 billion in the second quarter.
“We believe our continued focus on client selection and responsible growth has positioned us well,” he said. “Total loan balances grew for the first time since the first quarter of 2020 even as we recorded the lowest credit loss rates in 25 years