TheChek News Flow

Reports Q2 (Jun) earnings of $0.45 per share, excluding non-recurring items, $0.09 better than the Capital IQ Consensus Estimate of $0.36; revenues rose 1.8% year/year to $22.34 bln vs the $21.72 bln consensus. BAC reported Q2 net income of $5.3 billion compared to $2.3 billion in the year-ago period.

• Q2 Net interest income included $669 million ($0.04 per share) in positive market-related adjustments, primarily from the company's debt securities portfolio, due to the impact of higher long-term interest rates. This compares with $175 million in negative market-related adjustments in the year-ago quarter.
• Global Wealth and Investment Management reported net income of $690 million, compared to $726 million in 2Q14. Revenue was relatively stable at $4.6 billion, as a 9% increase in asset management fees and higher net interest income from loan growth were offset by the impact of the company's allocation of ALM activities on net interest income, and lower transactional revenue.
• Global Markets reported net income of $993 million, compared to $1.1 billion in prior year, reflecting lower gains on an equity investment and, to a lesser degree, lower sales and trading revenue. This was offset in part by reduced noninterest expense.
• Fixed Income, Currencies and Commodities sales and trading revenue, excluding net DVA, decreased 9% y/y, due to declines in credit-related businesses, offset in part by an improvement in macro products on increased client activity.
• Equities sales and trading revenue, excluding net DVA, increased 13% from the year-ago quarter, reflecting increased client activity in the Asia-Pacific region and strong performance in derivatives..
• Legacy Assets and Servicing reported net income of $45 million, compared to a loss of $2.7 billion for 2Q14, driven by lower expenses, primarily litigation expense, and a benefit in the provision for representations and warranties.

Capital Levels

• The Common equity tier 1 capital was 10.3% (Fully phased in Basel 3)
• Estimated supplementary leverage ratio for the Bank Holding Company was approximately 6.3% and the estimated SLR for the company's primary banking entity was approximately 7.0%.
• Tangible book value per share was $15.02; Book value per share was $21.91.