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Brian Moynihan, CEO, Bank of America
Scott Mlyn | CNBC
Bank of America shares declined after the lender posted third-quarter results that missed on revenue.
The firm said Wednesday that it generated $20.45 billion in total revenue, missing the $20.8 billion estimate of analysts surveyed by Refinitv. Profit in the quarter slumped 16% to $4.9 billion, or 51 cents a share, edging out the 49 cents estimate.
Shares of the firm dropped 2% in premarket trading.
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.
