Bank of America beat Wall Street's expectations on earnings but fell short on revenue, and reported higher expenses.

The $3.4 trillion-asset company announced Wednesday that net income was $7.1 billion for the quarter ending June 30, up 3.2% compared with the year-ago period. Earnings per share were 89 cents, exceeding the average 86 cents that analysts polled by S&P Capital IQ had predicted.

Revenue of $26.5 billion rose 4% year over year, but was below analysts' $26.7 billion estimate.

Noninterest expenses were $17.2 billion for the quarter, up 5% year over year. The Charlotte, North Carolina-based company attributed the increase to higher revenue-related expenses as well as investments in people, branding and technology.

The bank's provision for credit losses during the quarter was $1.6 billion, up from $1.5 billion in the same quarter last year. Total net charge-offs of $1.5 billion were flat year over year.

In a press release announcing the results, BofA Chairman and CEO Brian Moynihan characterized the quarter as "solid," noting that net interest income — which totaled $14.7 billion for the three-month period — had grown for the fourth consecutive quarter and highlighting the bank's return of $7.3 billion to shareholders through a combination of dividends and buybacks.

Read more about Bank of America here: https://www.americanbanker.com/organization/bank-of-america

Revenue increased year over year in the bank's consumer banking business as well as global wealth and investment management. In global markets, sales and trading revenue was up 14%.

In global banking, total corporation investment banking fees, excluding self-led, were down 9% from the year-ago period while the $603 billion in average deposits in that business was up 15%.

Average deposit balances of nearly $2 trillion increased 3% year over year, while average loans and leases of $1.1 trillion increased 7%, with growth across all business segments, the bank said.

In the press release, Alastair Borthwick, chief financial officer, said the bank's asset quality "remained strong" between April and June.

Read more about bank earnings here: https://www.americanbanker.com/earnings

"Consumer delinquencies have been stabilizing, while card net charge-offs improved year-over-year and commercial nonperforming loans declined sequentially," he said.

In April, BofA executives said they weren't predicting the worst outcome for the U.S. economy, but that they were preparing for it. Moynihan said at the time that as uncertainty surrounding the Trump administration's trade policies continues, "periods of economic change" may be ahead, but that the likely scenario would be a slowdown in growth, not a contraction.

For the quarter, BofA reported a return on tangible common equity of 13.4%, down from 13.9% in the first quarter. ROTCE is a key performance metric that reflects a company's profitability.

After this year's stress tests, BofA said its stress capital buffer is expected to drop to 2.5% — down from 3.2% last year. Beginning in the third quarter of 2025, it plans to increase its dividend by 8% to 28 cents per share.