Bank of America Stock Is Down. Earnings Weren’t All Good.

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Shares of Bank of America person gained astir 32% truthful acold this year.

Dreamstime

Bank net play continues with Bank of America, the latest of the large banks to present a mixed container of results.

Bank of America, the second-largest slope by assets successful the U.S., saw gross diminution 4% to $21.5 cardinal from the year-ago 4th owed to the interaction of debased involvement rates and a driblet successful trading activity. Analysts surveyed by FactSet were expecting gross of $21.8 billion.

Earnings, however, topped estimates with Bank of America seeing nett of $9.2 billion, oregon $1.03 per share, good up of the 77 cents analysts projected and the 37 cents per stock the slope earned successful the year-ago quarter. Results this 4th were helped by a $2.2 cardinal merchandise of reserves the slope acceptable speech past twelvemonth successful anticipation of a question of defaults owed to the economical interaction of the coronavirus pandemic.

“We delivered coagulated net and returned much superior to shareholders during the 4th arsenic we moved to a much unfastened economy,” main enforcement Brian Moynihan said successful a statement, referring to the $5.8 cardinal returned to shareholders via dividends and buybacks.

Bank of America results travel aft JPMorgan Chase (JPM) and Goldman Sachs (GS) reported connected Tuesday. While both banks easy topped estimates, shares tumbled arsenic investors were looking for caller maturation catalysts aft the expected driblet successful trading revenue.

At Bank of America, full trading gross fell 19% from the year-ago 4th arsenic fixed-income trading gross fell 38% and equities trading accrued 33%.

With trading gross down, arsenic expected by Wall Street, much attraction is being paid to indebtedness growth. Average loans and leases astatine Bank of America were $889 billion, 11% twelvemonth implicit twelvemonth but 2% higher from the erstwhile quarter. 

“Consumer spending has importantly surpassed prepandemic levels, deposit maturation is strong, and indebtedness levels person begun to grow,” Moynihan said.

Bank of America shares were down much than 2.2% successful premarket trading.

Citigroup (C) and Wells Fargo (WFC) besides study results Wednesday. Morgan Stanley (MS) reports earlier the doorbell connected Thursday.

Write to Carleton English astatine carleton.english@dowjones.com

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