Market volatility has fueled a record-breaking performance for Bank of America's (BAC) equity trading division in the second quarter. The bank's investment banking arm also gained from a rebound in deal-making activity.

The company stated that its second-quarter equity trading revenue surged 70% to $3.6 billion, exceeding expectations. Fixed-income trading revenue rose nearly 9% to $3.5 billion, also coming in above the average analyst forecast. This performance marks a historic first-half record for the sales and trading unit, which the bank has focused on strengthening in recent years.

The overall strength in financial markets also helped drive a recovery in transaction activity. Investment banking revenue at Bank of America reached $2.2 billion, surpassing the average analyst estimate of $1.91 billion. Advisory fees for mergers and acquisitions jumped nearly 68% to $558 million.

"In the near term, the pipeline remains strong and commercial lending has rebounded," Chief Executive Officer Brian Moynihan said in the statement.

The robust results from trading and investment banking lifted overall profits. Diluted earnings per share came in at $1.21, beating analyst expectations of $1.12.