Bank of America reported a stronger-than-expected drop in revenue on Wednesday as meaningful loan growth continued to elude the second-largest US lender.
The Charlotte-based bank has struggled to raise revenues since the Federal Reserve cut interest rates to near zero and fiscal and monetary stimulus programs reduced demand for new loans.
Total loans in the second quarter fell 12 percent, driven by a 30 percent decline in loans in the global banking division that focuses on corporates.
Revenue fell 4 percent from the same period a year ago to $21.5 billion, less than the $21.8 billion analysts had expected, according to FactSet figures.
Earnings were boosted by a $2.2 billion release from the loan loss reserve, reflecting the improved macroeconomic outlook. That offset lower sales and a 12 percent increase in operating expenses.
Overall, the Charlotte-based bank reported earnings of $9.2 billion, or $1.03 per share, compared to earnings of $3.5 billion, or 37 cents per share in the same period last year. Analysts polled by FactSet expected earnings of 77 cents per share.
Shares in Bank of America fell more than 2 percent to $39.01 during premarket trading.