Brian Moynihan, CEO, Bank of America
Scott Mlyn | CNBC
Bank of America posted second-quarter profit.
Earnings: $1.03 a share, including a one-time $2 billion tax benefit. It wasn’t immediately clear how that figure is comparable to the 77 cents estimate of analysts surveyed by Refinitiv.
Revenue: $21.6 billion, just under the $21.8 billion estimate.
Here’s what Wall Street expects:
Earnings: 77 cents a share, 108% higher than the year earlier period, according to Refinitiv.
Revenue: $21.8 billion, 2.8% lower than a year earlier.
Net Interest Margin: 1.67%
Trading Revenue: Fixed Income $2.71 billion, Equities $1.35 billion
Will Bank of America, the second-biggest U.S. lender by assets, join rivals in posting a quarterly boost from the release of loan loss reserves?
That’s what analysts are wondering after JPMorgan Chase reported results that beat analysts’ expectations after releasing $3 billion in loan loss reserves.
Like other lenders, Bank of America set aside billions of dollars for credit losses last year, when the industry anticipated a wave of defaults tied to the coronavirus pandemic. Instead, government stimulus programs appear to have prevented most of the feared losses, and banks have begun to release reserves this year.
Still, given the industry’s sluggish loan growth this year, analysts will want to hear CEO Brian Moynihan’s outlook for loans in the second half.
On Tuesday, JPMorgan Chase and Goldman Sachs each posted results that beat expectations, helped by strong revenue from Wall Street advisory activities.
Shares of Bank of America have climbed 31% this year, exceeding the 16% gain of the S&P 500 Index.
This story is developing. Please check back for updates.
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