On Tuesday, Bank of America reported second-quarter profit and revenue that slightly surpassed expectations, benefiting from increased interest income due to higher rates. The bank’s earnings rose by an impressive 19%, reaching $7.41 billion, equivalent to 88 cents per share, compared to $6.25 billion, or 73 cents per share, in the same period the previous year. Revenue also showed a significant 11% increase, reaching $25.33 billion, driven by a 14% surge in net interest income to $14.2 billion, which closely matched analysts’ expectations. CEO Brian Moynihan expressed optimism about the U.S. economy, noting that while it is growing at a slower pace, the job market remains resilient. He credited the bank’s continued organic client growth and increased client activity across various businesses, along with the positive impact of higher interest rates, for the favorable financial results. As a result, Bank of America’s shares rose more than 4% in response to the earnings report.

The bank’s Wall Street operations performed well, surpassing revenue expectations for the quarter. Fixed-income trading revenue experienced a remarkable 18% jump, reaching $2.8 billion, slightly exceeding the estimated $2.77 billion. However, equities trading slipped 2% to $1.6 billion, still topping the expected $1.48 billion. Although Bank of America was expected to be a major beneficiary of rising interest rates this year, its net interest income has faced scrutiny recently due to slower loan and deposit growth. In contrast, rival JPMorgan Chase reported a significant increase in net interest income, contributing to a 67% surge in quarterly profit. Despite some challenges, CFO Alistair Borthwick assured analysts that net interest income for the bank would slightly exceed $57 billion for the year, reaffirming the bank’s previous guidance.