09:45 AM EDT, 07/16/2024 (MT Newswires) -- Bank of America ( BAC ) on Tuesday reported better-than-expected second-quarter results, despite an increase in deposit costs impacting its net interest income.

GAAP earnings per share decreased to $0.83 for the three-month period ended June 30 from $0.88 a year earlier, but came in ahead of the Capital IQ-polled consensus of $0.80. Revenue, net of interest expense, ticked up 1% to $25.38 billion, topping the Street's view for $25.2 billion, driven in part by higher asset management and investment banking fees gains.

Net interest income declined 3% to $13.7 billion as higher deposit costs more than offset improved asset yields and "modest" loan growth, according to the bank. Non-interest income increased to $11.68 billion from $11.04 billion in the prior-year quarter, while noninterest expense rose 2% to $16.31 billion.

"Our team produced another strong quarter, serving a growing client base," Chief Executive Brian Moynihan. "The strength and earnings power of our leading consumer banking business is complemented by the growth and profitability of our global markets, global banking, and wealth management businesses."

Revenue in the global banking segment decreased 6% year over year to $6.05 billion due to lower net interest income and leasing revenue. Investment banking fees grew 29% to nearly $1.6 billion, led by debt capital market fees, Chief Financial Officer Alastair Borthwick said on a conference call, according to a Capital IQ transcript.

Consumer banking revenue fell to $10.21 billion from $10.52 billion in the prior-year period, impacted by lower deposit balances.

Global wealth and investment management advanced 6% to $5.57 billion amid a 14% jump in asset management fees. Global markets climbed 12% to $5.46 billion, boosted by increased sales and trading revenue, as well as higher investment banking fees.

Provision for credit losses in the second quarter jumped to $1.51 billion from $1.13 billion last year and $1.32 billion in the previous quarter. The provision included a $25 million net reserve release in the quarter, as well as net charge-offs of $1.5 billion.

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