Bank of America Corp. sales decreases by 10.8% in the third quarter of the financial year.
Investment banks beat analysts’ estimates for third quarter earnings per share.
Bank of America Corp values its provision for bad loans at £ 1.07 billion.
Bank of America Corp (NYSE: BAC) released its financial results for the third fiscal quarter on Wednesday, which missed analysts’ estimates of sales. However, the bank’s profit in the third quarter was stronger than expected.
The company’s shares reported a roughly 2% decline in premarket trading on Wednesday. Including the price action, Bank of America Corp now has a price per share of £ 19.23. By comparison, it traded at a significantly lower price of £ 13.93 per share in March due to the COVID-19 disruption. The stock started 2020 at £ 27.47 per share.
Bank of America’s third quarter financial results versus analysts’ estimates
Bank of America Corp announced that its third quarter net income fell to £ 3.78 billion, equivalent to 39.30 pence per share. For the same quarter last year, the company had posted higher net income of £ 4.47 billion, or 43.16 pence per share. According to FactSet, experts had forecast that the company will achieve even lower earnings of 30.06 pence per share in the last quarter.
In terms of revenue, the investment bank saw an annualized decline of 10.8% to £ 15.68 billion in the third quarter versus an expected increase of £ 16.03 billion according to FactSet.
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The company attributed the decline to its global markets, banking, and asset and investment management units, which had taken a hit in recent months due to the ongoing coronavirus pandemic. As a result, sales in these segments were below expectations in the third quarter.
However, revenue from consumer banking was above the experts’ forecasts for Bank of America Corp. in the third quarter. Bank of America last week launched the Digital Life Plan tool to help track customer priorities.
Other celebrities featured in Bank of America’s earnings report
Other key figures in the US multinational company’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 provision for bad loans at £ 1.07 billion.
The FactSet consensus for net interest income and provisions was £ 7.89 billion and £ 1.45 billion, respectively. Bank of America’s earnings report was released just a day after the settlement. JP Morgan Chase released its financial results for the third quarter of the fiscal year.
Bank of America developed quite optimistically on the stock markets last year with an annual increase of around 40%. At the time of writing, the US investment bank is valued at £ 870 million and value for money of 11.99.
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