Season bank results continues with
bank of America,
the newest of the big banks to deliver a mixed bag of results.
Bank of America, the second largest bank by assets in the US, saw revenue decline 4% to $21.5 billion from the same quarter a year ago due to the impact of low interest rates and a decline in the trading activity. Analysts polled by FactSet expected revenue of $21.8 billion.
However, earnings exceeded estimates as Bank of America saw earnings of $9.2 billion, or $1.03 per share, well above the 77 cents analysts forecast and the 37 cents per share the bank reported in the quarter of 2017. earned last year. Results this quarter were aided by a release of $2.2 billion in reserves that the bank had set aside last year in anticipation of a wave of defaults due to the economic impact of the coronavirus pandemic.
“We delivered solid profits and returned more capital to shareholders during the quarter as we transitioned into a more open economy,” CEO Brian Moynihan said in a statement, referring to the $5.8 billion returned to shareholders. through dividends and buybacks.
Follow Bank of America Results Resultaten
At Bank of America, total trading revenues were down 19% from the same quarter a year ago as fixed income trading revenues fell 38% and equity trading rose 33%.
Now that trading income has fallen, as expected by Wall Street, more attention is being paid to loan growth. Average loans and leases at Bank of America were $889 billion, down 11% year-over-year, but up 2% from the previous quarter.
“Consumer spending has significantly surpassed prepandemic levels, deposit growth is strong and credit levels have started to grow,” Moynihan said.
Shares of Bank of America fell more than 2.2% in pre-market trading.
(WFC) also reports results on Wednesday.
(MS) reports for the bell on Thursday.
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