(New York) Bank of America more than doubled its profit in the second quarter thanks in particular to the reduction of reserves set aside at the start of the pandemic, but saw its turnover decline due to the drop in interest rates .
–
–
The bank had increased its reserves by 4 billion in the second quarter of 2020 to be able to cope with possible defaults from its customers. In view of “improving the economic environment” as the economy recovers, she decided to reduce them by $ 2.2 billion.
“Consumer spending is significantly exceeding pre-pandemic levels, deposit growth is high and lending levels have started to rise,” facility CEO Brian Moynihan said in a statement.
Personal customer debit and credit card spending rose 16% from the previous quarter.
Bank of America’s net income jumped 173% to $ 9 billion.
Reported per share and excluding exceptional items, the preferred criterion for Wall Street investors, earnings rose to $ 1.03, more than the 77 cents expected by analysts.
The bank’s turnover, for its part, fell 4% to $ 21.5 billion, weighed down by the fall in interest rates which affects the amount it earns by lending money.
It is also reduced by the downturn in brokerage activity compared to the same period last year, when brokers took advantage of the high volatility in the financial markets.
At the same time, the establishment highlights the increase in expenses, fueled among other things by the increase in remuneration.
The stock was down 2.1% in electronic trading before the New York Stock Exchange opened.
–
