Investment banking and record trading volume as higher market volatility bolstered Bank of America’s profit in the second quarter, which eased some of the lingering uncertainties of the global economy.
Net income jumped to $9.1 billion, or $1.21 per share, for the 12 months ended June 30, from $7.2 billion, or 90 cents per share, in the same period a year ago, the lender said.
The quarter was characterized by large market moves due to growing geopolitical tensions, especially in the search for a peace agreement between the United States and Iran. The war and its possible consequences for oil production fueled a sharp rise in the price of crude and uncertainty in financial markets.
Meanwhile, investors remained focused on persistent inflation and shifting interest rate outlook, leading to many rebalancing investment portfolios. But for major Wall Street banks, increased client activity was a positive sign with trading desks seeing a rise in transactions.
Bank of America’s sales and trading revenue rose to a record high of $7.1 billion in the quarter from $5.3 billion a year ago. Equities trading was a bright spot, as revenue jumped 70 percent to $3.6 billion. That’s better than earlier predicted by Chief Executive Brian Moynihan, who had expected trading revenue growth of about 15 percent.
Investment banking also had a strong year, with investment dealmaking picking up globally. The first half of 2026 saw a record number of mergers and acquisitions valued at over $10 billion, with a more favorable regulatory landscape, LSEG data shows.
Bank of America Securities served as joint book-running manager for SpaceX’s record-breaking $2 trillion stock market debut, one of the biggest events to boost the recovery of the U.S. initial public offering market this year. The bank also counseled NextEra Energy with regard to its $66.8 billion May announcement of the acquisition of Dominion Energy.
So, overall investment banking fees increased 50 percent from the previous year, reaching $2.1 billion.
Our markets-facing businesses also had an outstanding performance in the quarter, with investment banking fees growing by 50% from a year ago. The pipelines are still strong, as are commercial borrowings, in the near-term,” Moynihan said in a statement.
The bank also gained from the ongoing success of its traditional lending. Net interest income, which is interest received on loans less interest paid on deposits, rose 9 percent to $16 billion from a year before.
Loans and leases increased 1 percent to $321 billion, continuing to grow at a moderate pace as consumers’ spending remains robust despite the macroeconomic uncertainty.
The findings reflect the prowess of big U.S. banks in earning profits from multiple business sectors, including trading, investment banking and lending, as financial markets remained volatile.
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