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Bank of America’s Profit More Than Doubles

Bank of America Corp.

BAC -2.81%

said the economic rebound helped to more than double its profit, but low rates weighed on its revenue.

The nation’s second-largest bank by assets posted earnings Wednesday of $9.22 billion in the second quarter, up from $3.53 billion a year earlier. The bank earned $1.03 per share, beating the 77 cents forecast by analysts polled by FactSet.

Bank of America’s bottom line was lifted by its decision to release $2.2 billion of reserves it had set aside during the depths of the coronavirus pandemic to protect against a wave of soured loans. Like peers including JPMorgan Chase & Co., Bank of America has been releasing its loan-loss stockpiles as the U.S. economy rebounds.

“Consumer spending has significantly surpassed pre-pandemic levels, deposit growth is strong and loan levels have begun to grow,” CEO

Brian Moynihan

said.

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Bank of America and its peers sit at the center of the U.S. economy. They have benefited from the reopening of businesses, record-high stock prices and people’s increased willingness to spend after a year of hunkering down.

But low rates and tepid loan demand have challenged banks. Bank of America in particular is sensitive to interest rates. Net interest income of $10.23 billion in the second quarter was down 6% from $10.85 billion a year earlier.

While rates remain at rock-bottom levels, there are signs that lending is picking up. Outstanding loans and leases totaled $918.93 billion in the second quarter, up 2% from $903.09 billion in the first quarter but down from a year ago.

Noninterest income, which includes fees, fell 2% to $11.23 billion, from $11.48 billion a year earlier.

Altogether, revenue in the second quarter was $21.47 billion, down 4% from $22.33 billion a year earlier. That missed analysts’ expectations of $21.8 billion.

The Charlotte, N.C., lender’s investment banking fees were down slightly from a year earlier.

Bank of America, like its peers, suffered from a drop in trading, though its decline wasn’t as big. Adjusted trading revenue fell 19% to $3.6 billion from $4.41 billion a year earlier.

The bank’s shares fell 2.3% in morning trading. Bank stocks have outperformed the broader stock market this year as investors buy them to bet on the economic rebound.

But investors have also been watching Bank of America’s expenses, which rose 12% from a year earlier to $15.05 billion from $13.41 billion.

Write to Ben Eisen at ben.eisen@wsj.com

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