Bank of america
The third quarter fell as the bank was weighed by the continuing effects of operating in a low interest rate environment.
Revenue for Bank of America (ticker: BAC) came in weaker than the bank, as others in its peer competed with the economic impact of the coronovirus epidemic. The bank earned a share of 51 cents on $ 20.3 billion in revenue. Analysts polled by FactSet expect banks to report earnings of 49 cents on revenue of $ 20.8 billion.
“As the economy continued to improve, we raised approximately $ 5 billion this quarter, reflecting the diversity of our business model, our industry-leading market position and digital capabilities, and followed us to responsible growth Is, ”Brian Moynihan, president and chief Bank of America executive, said in a statement.
Bank shares fell 5% on Wednesday, while
Declined by 0.7%, and
Dow Jones Industrial Average
Earlier this year, the third quarter results were slashed to reduce the Federal Reserve’s interest rates to near zero. Bank of America said net interest income fell 17% to $ 10.1 billion compared to the year-ago quarter due to the impact of lower interest rates.
Sales and business results, which were a bright spot for banks during the first half of the year, were more muted for Bank of America. Revenue of $ 2.2 billion was down from the bank’s $ 4.2 billion in the second quarter, with the third quarter of last year.
The bank’s loan deficit provision was $ 1.4 billion during the quarter, down from $ 5.1 billion during the previous quarter, but still reflects an uncertain economic environment.
Wall Street pays extensive attention to the bank’s earnings to get a broader idea of how the economy is performing.
While banks have not had to set aside for bad loans this quarter as they have in the last two quarters, they are not yet ready to announce a win.
(JPM) and Citigroup (C) reported the financial results on Tuesday and also stated on cautious tone that their results have come better than expected. Executives said some of the losses they are hanging on to themselves may not be seen until next year as stimulus measures worsen, especially if unemployment remains high.
(GS), which advanced 0.2%, and
(WFC), which lost 6%, also revealed results on Wednesday.
Morgan Stanley (MS)
Reports its results on Thursday.
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