The top five US banks’ (VFH) (XLF) trading (fixed income, currencies and commodities, and equities) revenues rose 10% in the second quarter to over $20 billion—compared to $18.55 billion in the same period the previous year. However, most of the banks’ trading gains were driven by equities.
Bank of America posted strong earnings growth
Bank of America’s (BAC) second-quarter profit rose 33% to $6.8 billion—compared to analysts’ expectations of $5.92 billion. The bank was able to reduce its costs 5% to $13.3 billion—lower than the expectations of $13.5 billion. The bank also posted higher-than-expected revenue growth of 3% to $22.6 billion—compared to the $22.3 billion estimate.
Morgan Stanley’s earnings beat analysts’ estimates
Morgan Stanley (MS) reported revenues of $10.61 billion in the second quarter—compared to analysts’ expectations of $10.05 billion. The company’s EPS was $1.30—compared to analysts’ estimates of $1.10 per share. The bank posted impressive trading and investment banking results.
Wells Fargo refunds its customers
Dow Jones reported that Wells Fargo (WFC) is refunding its customers millions of dollars for account add-on products like legal services and insurance. The bank stopped selling add-on products last year. Wells Fargo is phasing out existing products.