Who Does #2 Work For? America.

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Bank of America, the #2 bank in the U.S. by market value, reported a subprime-loss free net income gain of 5% over the same period last year to $5.76 billion, up 9 cents a share. Net income of $1.28 a share beat analyst estimates by 8 cents. The bank's revenue jumped 7.4% to $19.56 billion, beating analyst estimates by about $1 billion.
Bank of America is the same story, different bank with regards to the drivers of Q2 earnings. Throughout the banking sector, strong capital markets (driven by investment banking) and wealth management results drove earnings during the quarter, tempered by weakness in retail and credit cards. Bank of America's wealth management unit is poised to continue its strong growth with the Q2 acquisition of U.S. Trust from Charles Schwab.
Bank of America doesn't have much exposure to the subprime market because it doesn't directly serve the segment. Instead, the bank takes more of a hit from personal delinquencies in its credit card unit.
Bank of America's Net Rises 5.2% On Capital-Markets Activity [Wall Street Journal]

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