July 16 (Reuters) - Bank of America ( BAC ) beat profit

estimates for the latest three-month period on Wednesday as its

traders brought in more revenue from tumultuous markets, while

interest income rose for a fourth straight quarter.

Banks' trading desks benefited from market turbulence during

the second quarter as clients reacted to shifting U.S. trade

policies and escalating geopolitical tensions.

The bank's shares, which have gained 5% this year, rose 1%

in trading before the bell.

Peers JPMorgan Chase ( JPM ) and Citigroup ( C/PN ) also beat

second-quarter profit estimates, helped by gains in their

trading divisions.

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.

"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 Brian Moynihan said in a statement.

BofA's investment banking fees slid 9% to $1.4 billion in

the second quarter, lagging behind rivals. Investment banking

fees rose 7% at JPMorgan ( JPM ), 13% at Citigroup ( C/PN ) and 9% at Wells Fargo ( WFC )

, which benefited from rebounding activity at the end of

the quarter.

Dealmaking was stalled in April by uncertainty over U.S.

President Donald Trump's shifting trade policies, geopolitical

tension and elevated interest rates. However, banking executives

and analysts have expressed optimism about the M&A pipeline and

foresee more transactions in the second half of the year.

Last month, BofA had projected investment banking fees to be

roughly $1.2 billion, while trading revenue was expected to grow

by mid- to high-single digits.

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.

Wall Street had expected BofA to earn 86 cents a share in

the quarter, according to estimates compiled by LSEG.

INTEREST INCOME

Rate cuts by the Federal Reserve last year have helped

reduce the cost of deposits for banks, allowing them to pocket

more in net interest income - the difference between what they

earn on loans and pay out on deposits.

BofA's net interest income grew 7% to $14.7 billion. The

bank had previously forecast record NII for 2025, and CEO Brian

Moynihan reiterated that target last month.

Bank of America ( BAC ) reiterated that its NII would reach

$15.5 billion to $15.7 billion in the fourth quarter.

The lender set aside $1.6 billion in provisions for

credit losses in the second quarter, compared with $1.5 billion

a year earlier.

BofA's stock has underperformed its major peers and the

broader KBW Bank Index so far in 2025.

(Reporting by Pritam Biswas and Arasu Kannagi Basil in

Bengaluru and Nupur Anand in New York; editing by Lananh Nguyen

and Anil D'Silva)