Home Finance Bank of America (BAC) 2Q 2022 earnings

Bank of America (BAC) 2Q 2022 earnings

by Enochadmin

Financial institution Of America CEO Brian Moynihan is interviewed by Jack Otter throughout “Barron’s Roundtable” at Fox Enterprise Community Studios on January 09, 2020 in New York Metropolis.

John Lamparski | Getty Photographs

Financial institution of America on Monday posted combined second-quarter outcomes that included the profit from rising rates of interest and about $425 million in bills tied to regulatory issues.

Listed here are the numbers:

  • Earnings: 73 cents a share. Estimate in line with Refinitiv was 75 cents a share
  • Income: $22.79 billion, vs. $22.67 billion

Revenue dropped 32% to $6.25 billion, or 73 cents a share, from a yr earlier because the agency took a $523 million provision for credit score losses, the financial institution mentioned in a statement. A yr in the past, the financial institution had a $1.6 billion profit as debtors proved extra creditworthy than anticipated.

Shares of the lender vacillated between beneficial properties and losses in premarket buying and selling and rose lower than 1%.

Financial institution of America, led by CEO Brian Moynihan since 2010, had loved tailwinds as rising rates of interest and a rebound in mortgage progress boosted earnings. However financial institution shares obtained hammered this yr amid considerations that prime inflation will spark a recession, which might result in larger mortgage defaults.

Moreover, broad declines throughout monetary belongings have begun to indicate up in financial institution leads to the quarter, with Wells Fargo saying that “market situations” pressured it to submit a $576 million impairment on fairness holdings.

JPMorgan mentioned final week it had a $257 million writedown on bridge loans for leveraged buyout shoppers. For its half, Financial institution of America CFO Alastair Borthwick mentioned final month that the financial institution will probably submit a $150 million writedown on its buyout loans.

Financial institution of America shares have fallen 28% this yr via Friday, worse than the 16% decline of the KBW Financial institution Index.

Final week, JPMorgan and Wells Fargo posted second-quarter revenue declines because the banks put aside extra funds for anticipated mortgage losses, whereas Morgan Stanley disillusioned after a bigger-than-expected slowdown in funding banking. Citigroup was the only agency to prime expectations for income because it benefited from rising charges and powerful buying and selling outcomes.

This story is growing. Please verify again for updates.

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