Home Economy Bank of America Corp’s revenue slides 10.8% in the fiscal third quarter

Bank of America Corp’s revenue slides 10.8% in the fiscal third quarter

2

This post was originally published on this site

  • Bank of America Corp’s revenue slides 10.8% in the fiscal third quarter.
  • The investment banks tops analysts’ estimates for per-share earnings in Q3.
  • Bank of America Corp values its provisions for bad loans at £1.07 billion.

Bank of America Corp (NYSE: BAC) reported its financial results for the fiscal third quarter on Wednesday that missed analysts’ estimates for revenue. The bank’s profit in Q3, however, came in stronger than expected.

Shares of the company were reported about 2% down in premarket trading on Wednesday. Including the price action, Bank of America Corp now has a per-share price of £19.23. In comparison, it was trading at a significantly lower £13.93 per share in March due to the COVID-19 disruptions. The stock had started the year 2020 at £27.47 per share.

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Bank of America’s Q3 financial results versus analysts’ estimates

Bank of America Corp said that its net income in the third quarter slid to £3.78 billion that translates to 39.30 pence per share. In the comparable quarter of lasts year, it had reported a higher £4.47 billion of net income or 43.16 pence per share. According to FactSet, experts had forecast the company to print an even lower 30.06 pence of per-share earnings in the recent quarter.

In terms of revenue, the investment bank posted a 10.8% annualised decline in Q3 to £15.68 billion versus a higher £16.03 billion expected, as per FactSet.

The company attributed the decline to its global markets, banking, and wealth and investment management units that took a hit due to the ongoing Coronavirus pandemic in recent months. Consequently, revenue from these segments printed below expectations in the third quarter.

Revenue from consumer banking, however, came in higher than what the experts had forecast for Bank of America Corp in Q3. Bank of America launched digital Life Plan tool last week to track customer priorities.

Other prominent figures in Bank of America’s earnings report

Other prominent figures in the American multinational’s earnings report on Wednesday include a 16.9% year over year decline in net interest income to £7.81 billion. Bank of America Corp valued its provisions for bad loans at £1.07 billion.

FactSet Consensus for net interest income and provisions stood at £7.89 billion and £1.45 billion, respectively. Bank of America’s earnings report came only a day after its peer, JP Morgan Chase published its financial results for the fiscal third quarter.

Bank of America performed fairly upbeat in the stock market last year with an annual gain of about 40%. At the time of writing, the U.S. investment bank is valued at £870 million and has a price to earnings ratio of 11.99.