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Bank of America shares have gained nearly 32% so far this year.
The time of dreams
The banking results season continues with
Bank of America,
the last of the big banks to deliver mixed results.
Bank of America, the second-largest bank in the United States by assets, saw revenues decline 4% to $ 21.5 billion from the quarter last year due to the impact of interest rates. low interest and a decline in trading activity. Analysts polled by FactSet expected revenue of $ 21.8 billion.
Profits, however, exceeded estimates, with Bank of America making a profit of $ 9.2 billion, or $ 1.03 per share, well ahead of the 77 cents projected by analysts and the 37 cents per share the bank said. won in the quarter of last year. This quarter’s results were aided by a release of $ 2.2 billion in reserves the bank built up last year in anticipation of a wave of defaults due to the economic impact of the coronavirus.
“We generated strong earnings and returned more capital to shareholders during the quarter as we moved to a more open economy,” CEO Brian Moynihan said in a statement, referring to the $ 5.8 billion returned to shareholders in the form of dividends and redemptions.
Bank of America results come after
JPMorgan Chase
(JPM) and
Goldman Sachs
(GS) reported on Tuesday. While both banks easily beat estimates, stocks fell as investors sought new growth catalysts after the expected drop in trading income.
At Bank of America, total trading income fell 19% from the previous year quarter, with fixed income trading income falling 38% and equity trading increasing 33% .
With trading revenues declining, as predicted by Wall Street, more attention is being paid to loan growth. Bank of America’s average loans and leases were $ 889 billion, down 11% year-over-year, but up 2% from the previous quarter.
“Consumer spending has far exceeded pre-pandemic levels, deposit growth is strong and lending levels have started to rise,” Moynihan said.
Shares of Bank of America fell more than 2.2% in pre-market trading.
Citigroup
(C) and
Wells fargo
(WFC) also release results on Wednesday.
Morgan stanley
(MS) reports Thursday before the bell.
Write to Carleton English at [email protected]
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