Bank of America Sees Decline in Global Markets Revenues in Q2 2021

Fazzaco learned that Bank of America Corp has posted its financial performance metrics for the second quarter of 2021, with the Global Markets segment showing a drop in revenues and income.

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Global Markets net income decreased by 8 percent to $908 million during Q2 of 2021 compared to the same period of last year. The revenue of the segment in the second quarter of 2021 came in at $4.7 billion, which is down 12% from a year earlier. Noninterest expense increased $787 million, or 29%, to $3.5 billion. Equities revenue increased 33% to $1.6 billion, thanks to a stronger trading performance and increased client activity in derivatives and Asia.

Across all segments, net income amounted to $9.2 billion, or $1.03 per diluted share, in the second quarter of 2021. The figure reflects:

​• $1.6 billion provision for credit losses benefit;

• $2.0 billion positive tax adjustment related to revaluation of UK deferred tax assets.

Revenue, net of interest expense, decreased 4% from a year earlier to $21.5 billion. Net interest income (NII) declined 6% to $10.2 billion, due primarily to lower interest rates.

Provision for credit losses decreased $6.7 billion to a benefit of $1.6 billion, reflecting a reserve release of $2.2 billion amid an improved macroeconomic outlook.

Earlier this month, Fazzaco reported that Bank of America has created a new team dedicated to researching cryptocurrencies​. The new crypto team will be led by Alkesh Shah, a founding member of the Data & Innovation Strategy Group at Bank of America. Shah will report to Michael Maras, who leads the bank's global fixed income, currencies, and commodities research. Besides cryptocurrencies, the team will also cover technologies tied to digital currencies.