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On January 30, 2019, a Bank of America logo is seen in the Manhattan borough of New York City, New York, United States. Carlo Allegri/Reuters 14th of July – On Wednesday, Firm of America Corp (BAC.N) reported a 173 percent increase in second-quarter earnings as it released reserves held up during the pandemic last year, but sales remained poor and the bank pointed to excessive spending. Net income applicable to common shareholders increased to $8.96 billion, or $1.03 per share, from $3.28 billion, or 37 cents per share, a year ago. According to Refinitiv’s IBES estimate, analysts predicted a profit of 77 cents per share on average. Last year, the Federal Reserve introduced ultra-low interest rates in order to speed up the recovery from the pandemic-induced recession. Banks like Bank of America profit from the difference between what they earn on loans and what they pay out on deposits, thus low rates eat into their profits. A resurgence in the broader economy has been fueled by strong job growth and vaccines against COVID-19. Low rates, on the other hand, are projected to hurt Wall Street’s biggest banks. Due to low interest rates, sluggish loan demand, and a slowdown in trading, JPMorgan Chase & Co (JPM.N) executives warned on Tuesday that the bright forecast for the US economy would not result in blockbuster revenues in the medium term. In the third quarter, Bank of America, the second-largest bank in the United States by assets, released $2.2 billion in reserves, reflecting the stronger economic outlook. However, the amount released was less than the $2.7 billion set aside in the previous quarter. Net of interest expenditure, total sales declined 4% to $21.5 billion. Niket Nishant in Bengaluru and Elizabeth Dilts Marshall in New York contributed reporting, and Saumyadeb Chakrabarty edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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