Erica, how’s B of A performing?

The Warren-Buffet backed, “systematically important”, “too big to fail grow” Bank of America reported some impressive numbers for its second-quarter that was supposed to please the street — it delivered a billion dollar more than what was expected in revenues ($22.83 billion vs. $21.78 billion street expectation)

But why did the stock fall after the earnings came out? Well, there’s just one small problem — Net Interest Income! For the uninitiated, NII is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors. NII came in at $11 billion vs. expected $11.34 billion — a small blip that was accentuated by the fact that its competitors like JP Morgan and Wells Fargo did much better.

The CEO of Bank of America, Brian Moynihan, who took over during its crisis in 2010 has to thank Janet Yellen and the Feds for the reversal of his bank’s fortunes with their interest rate hikes.

Brian Moynihan and his team looks to continue setting records (banking unit reported $5 billion!) in the coming quarters and is aggressively continuing with its “cost cutting” measures — basically laying off people in large numbers — 75,000 jobs under Moynihan so far with the FX trading desk next in the chopping line.

Check out their earnings transcript for more insights.

This story was originally published in AlphaNews Newsletter on July 19, 2017. Subscribe to the newsletter to read other such interesting stories