10:39 AM EDT, 07/16/2025 (MT Newswires) -- Bank of America ( BAC ) reported second-quarter earnings that topped market estimates, but revenue fell short of expectations, while Chief Financial Officer Alastair Borthwick said substantial uncertainty remains around the potential impact of tariffs.

The lender's per-share earnings rose to $0.89 for the June quarter from $0.83 a year earlier, above the consensus on FactSet for $0.86. Total revenue, made up of net interest and noninterest income, increased 4% to $26.46 billion, but trailed Wall Street's view for $26.7 billion. The stock was down 1.9% in Wednesday trade.

Bank of America ( BAC ) is the only major US bank to have missed revenue expectations so far this earnings season, while JPMorgan Chase (JPM), Wells Fargo (WFC), Citigroup (C), Goldman Sachs (GS) and Morgan Stanley (MS) all reported above estimates.

Consolidated net interest income grew 3% to $14.67 billion, while noninterest income inclined to $11.79 billion from $11.68 billion.

"We delivered another solid quarter, with earnings per share up 7% from last year," Bank of America Chief Executive Brian Moynihan said in the earnings release. "Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose."

During a conference call with analysts, Borthwick said there "remains a good amount of uncertainty from the impacts related to announced tariffs and the potential for continued uncertainty," according to a FactSet transcript. On Tuesday, JPMorgan CEO Jamie Dimon cautioned that uncertainties related to tariffs, deteriorating geopolitical conditions, high fiscal deficits, and elevated asset prices continue to pose "significant" risks to the US economy.

Earlier in the week, US President Donald Trump reportedly said the US will impose "very severe tariffs" on Russia in the absence of a deal in 50 days. In social media posts Saturday, Trump revealed plans to impose 30% tariffs on the European Union and Mexico, effective Aug. 1.

Still, Bank of America ( BAC ) saw market conditions improve in the second quarter, prompting the lender's research team to maintain its prediction that the US will not enter into a recession, Moynihan said on the call. The bank's research team also continues to see a "modestly growing economy" and no interest rate cuts by the Federal Reserve until next year, Moynihan told analysts.

For the second quarter, global banking revenue declined 6% year over year to $5.69 billion, as investment banking fees dropped 9% to $1.4 billion. JPMorgan, Wells Fargo, Goldman Sachs and Citigroup all recorded gains in investment banking fees.

Global markets revenue jumped 10% to $5.98 billion, driven by a 14% surge in sales and trading revenue. "We saw good momentum in our markets businesses," Moynihan said in the statement. Bank of America's ( BAC ) fixed income, currencies and commodities revenue climbed 16% to $3.2 billion, while equities revenue advanced 10%.

Consumer banking revenue rose 6% to $10.81 billion, while global wealth and investment management was up 7% at $5.94 billion. Provision for credit losses increased to $1.59 billion from $1.51 billion in the 2024 quarter.

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