The consumer banking arm of Bank of America (BofA) has posted a net income of $1.7bn for the second quarter of 2015, an increase of 4.28% from $1.63bn a year ago.
For the quarter ended 30 June 2015, the division’s total revenue fell by 1.37% to $7.54bn from $7.65bn in the corresponding quarter of 2014, as the allocation of asset liability management activities and lower card yields and card loan balances were partially offset by higher noninterest income.
The unit’s provision for credit losses fell to $506m from $550m a year ago due to continued improvement in credit quality within the credit card and consumer vehicle lending portfolios.
Noninterest expense fell 4.08% to $4.32bn from $4.5bn in the second quarter of 2014. For the quarter, the unit’s average deposit balances increased 6% to $545.5bn compared to the year ago.
Client brokerage assets increased 15% from the prior year quarter to $122bn, owing mainly to strong account flows and improved market valuations.
The bank said that the division issued 1.3 million new consumer credit cards in the second quarter, the highest number since the third quarter of 2008.
The number of mobile banking customers surged to 17.6 million, and 13% of all deposit transactions by consumers were done through mobile as against 10% a year earlier.
Overall, Bank of America group’s posted a net income of $5.32bn for the second quarter, a surge of 132% compared to $2.29bn in the prior year quarter.