Earnings slide ongoing for banks; BofA Q2 profit dips 32%

A woman walks past a Bank of America branch, Friday, Jan. 14, 2022, in Woodmere Village, Ohio. Bank of America's second quarter profits fell by 32% from a year ago, the nation's second-largest bank said Monday, July 18, 2022, the latest bank to report a decline in profits after a strong 2021. (AP Photo/Tony Dejak, FIle)

NEW YORK (AP) — Bank of America's second quarter profits fell 32%, the latest major U.S. bank to report a dip in earnings after a strong 2021.

A better reflection of performance at the country’s second largest bank this quarter was revenue, which increased from $21.5 billion, to $22.7 billion year over year, largely due to higher interest rates and an increased level of lending.

Quarterly profit fell to $6.2 billion, or 73 cents per share, the bank reported Monday, compared with a profit of $9.2 billion, or $1.03 a share, in the same period a year earlier.

Profits last year were boosted after the bank releasing billions of dollars from its loan loss reserves, which is money the bank set aside in the pandemic to cover potentially bad loans.

JPMorgan Chase, Wells Fargo and Citigroup all reported double-digit profit declines last week, citing similar reasons.

Wall Street is largely focusing on the outlook for the second half of the year because of the potential for a recession that could be triggered by inflation and the Federal Reserve's aggressive maneuvers to combat rising prices. Last week JPMorgan's Chairman and CEO Jamie Dimon said inflation, interest rate increases as well as the War in Ukraine were all likely “to have negative consequences on the global economy sometime down the road.”

Bank of America's top official, Brian Moynihan, was a bit more bullish in his comments about the economy in prepared remarks Monday, saying that the U.S. consumer remains “resilient” despite economic uncertainty.

Shares of Bank of America Corp, based in Charlotte, N.C. fell 2% before the opening bell.