Size of the text
Bank of America’s stock has gained about 32% so far this year.
Dreamstime
The bank earnings season is still going strong.
Bank of America is a financial institution based in the United States.
The latest big bank to give a mixed bag of earnings is Citigroup. Due to the impact of low interest rates and a dip in trading activity, Bank of America, the second-largest bank in the United States by assets, saw revenue fall 4% to $21.5 billion in the most recent quarter. FactSet polled analysts, who predicted revenue of $21.8 billion.
Earnings, on the other hand, surpassed expectations, with Bank of America reporting a profit of $9.2 billion, or $1.03 per share, much exceeding analysts’ expectations of 77 cents per share and the 37 cents per share earned the year before. The bank released $2.2 billion in reserves set aside last year in anticipation of a wave of defaults owing to the economic impact of the coronavirus pandemic, which aided results this quarter. “As we shifted to a more open economy, we delivered solid profitability and returned more capital to shareholders throughout the quarter,” said CEO Brian Moynihan in a statement, alluding to the $5.8 billion given to shareholders via dividends and buybacks. The Bank of America results are next.
JPMorgan Chase & Co., Inc.
(JPM) as well as
Goldman Sachs is a financial services firm.
(GS) published a study on Tuesday. While both banks easily exceeded expectations, shares fell as investors sought new growth catalysts in the wake of the projected reduction in trading revenue. Total trading revenue at Bank of America declined 19 percent year over year, with fixed-income trading revenue down 38 percent and equities trading up 33 percent. With trading revenue down, as Wall Street predicted, greater emphasis is being placed on loan growth. Bank of America’s average loans and leases totaled $889 billion, up 1% year over year but up 2% from the preceding quarter. “Consumer spending has surpassed pre-pandemic levels, deposit growth is healthy, and lending levels have started to rise,” Moynihan added. In premarket trading, Bank of America’s stock was down more than 2.2 percent.
Citigroup
and (C)
Wells Fargo & Company
(WFC) will also release its results on Wednesday.
Morgan Stanley is a financial services firm based in
(MS) will report before the market opens on Thursday. Carleton English may be reached at carleton.english@dowjones.com./n
Read More
