Bank of America posted mixed results on Wednesday morning for the third quarter, beating analysts expectations on profits but falling behind on revenue expectations.
Bank of America pulled in $4.9 billion in profit in Q3, up 38% from the prior quarter but down 16% from the same quarter in 2019.
Revenue clocked in at $20.3 billion, down 11% from the same quarter last year.
The bank said it added another $1.4 billion to its credit loss provisions to help cover bad commercial loans during the coronavirus crisis—the new provision is far less than what it put aside during the early days of the crisis.
Shares of the bank fell more than 2% in premarket trading, and are down 13.7% for the year.
“As the economy continued to recover, we generated nearly $5 billion in earnings this quarter, reflecting the diversity of our business model, our industry-leading market position and digital capabilities, and our adherence to responsible growth,” CEO Brian Moynihan said in a statement.
Wall Street’s biggest banks are all reporting their third quarter results this week, and investors will be watching closely for clues on how the financial giants are weathering the ongoing coronavirus recession. Citigroup reported a $3.2 billion profit on Tuesday, beating analysts’ expectations. JPMorgan, the largest bank in the United States, shattered expectations after pulling in a $9.4 billion profit in the third quarter. The huge gain came as the bank wound down its credit loss provisions—money socked away to help cover bad consumer or commercial loans during the recession—by 60%, signaling confidence that the economy is headed towards recovery. Goldman Sachs said Wednesday that it nearly doubled its third quarter profits from the same period last year, led by gains in its trading and asset management divisions.
What To Watch For
Bank earnings will continue on Thursday as Morgan Stanley and Charles Schwab report their results.
Citigroup Pulls In $3.2 Billion In Profit As Banks Beat Expectations (Forbes)
JPMorgan, Nation’s Largest Bank, Posts $9.4 Billion Profit–Shattering Wall Street Expectations Despite Pandemic (Forbes)
Dillard’s Stock Skyrockets 30% After Warren Buffett’s Deputy Discloses 6% Personal Investment (Forbes)
77% Of Economic Activity Lost To Social Distancing Is Back, But An Economic Recovery Still Depends On A Vaccine (Forbes)