Bank of America shares dip as the lender, pressured by low rates, misses on third-quarter revenue


Brian Moynihan, CEO, Bank of America

Scott Mlyn | CNBC

Bank of America is scheduled to report third-quarter earnings before the opening bell Monday.

The firm generated $20.45 billion in revenue, missing the $20.8 billion estimate of analysts surveyed by Refinitv.

Here’s what Wall Street expected:

Earnings: 49 cents a share, 12% lower than the year earlier period, according to Refinitiv.

Revenue: $20.8 billion, 9.4% lower than a year earlier.

Net Interest Margin: 1.82%

Trading Revenue: Fixed Income $2.28 billion, Equities $1.2 billion

Will Bank of America join rivals by posting improving results as loan provisions subside?

That’s what analysts and investors are wondering after JPMorgan Chase and Citigroup each posted results that beat analysts’ expectations as the firms set aside less money for defaulting loans.

Bank of America, the second-biggest U.S. lender by assets, has booked a total $9.8 billion provision for credit losses in the first two quarters of 2020. Analysts expect that figure to shrink in the third quarter, just as it has at competitors.

Like JPMorgan, the bank could also see a boost from its trading operations.

Shares of Bank of America have declined 29% so far this year, a slightly better performance than the KBW Bank Index.

This story is developing. Please check back for updates.

Products You May Like

Articles You May Like

Top earning New Yorkers could face 61.2% combined tax rate under House plan, Californians may face 59% rate
Winnie-the-Pooh’s UK cottage is available for rental via ‘Bearbnb’
NYC’s high-end rentals in Queens make huge recovery
Want to raise financially healthy kids? Here’s what to do — and mistakes to avoid
$470K Italian villa being raffled off for just $35 a ticket

Leave a Reply

Your email address will not be published. Required fields are marked *