Plus   Neg

Bank Of America Q2 Profit Beats Estimates; Revenue Down 3%

Bank of America (BAC) reported second quarter earnings per share of $0.37 compared to $0.74, prior year. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $0.27, for the quarter. Analysts' estimates typically exclude special items. Pretax income declined 58% year-on-year to $3.8 billion. Net income of $3.5 billion included the impact of a $4.0 billion reserve build primarily associated with a weaker economic outlook related to COVID-19. Provision for credit losses increased to $5.1 billion, driven by $4.0 billion reserve build. Pretax, pre-provision income, was down 9% to $8.9 billion.

Second quarter revenue, net of interest expense, decreased 3% year-on-year to $22.3 billion. Analysts expected revenue of $22.01 billion for the quarter. Net interest income declined 11% to $10.8 billion, driven by lower interest rates, partially offset by loan and deposit growth. Noninterest income rose 5% to $11.5 billion, led by strong capital markets results.

CFO Paul Donofrio said: "We strengthened an already strong balance sheet by increasing capital and liquidity and growing deposits. While net charge-offs remained relatively low by historical standards, we added another $4 billion to credit reserves to reflect the current economic outlook. We ended the quarter with record deposits of $1.7 trillion, $242 billion in common equity, and $21 billion in credit reserves."

Shares of Bank of America were down nearly 2% in pre-market trade on Thursday.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Amazon.com, Inc. can be held liable for damages caused by defective goods sold on its Marketplace including third parties, according to a ruling by a California appeals court. The California Fourth District Court of Appeals was pronouncing the ruling in a case where a defective replacement laptop battery caught fire and inflicted a woman with third-degree burns. Facebook has launched "Voting Information Center" on Facebook and Instagram platforms, with a view to boosting the number of Americans vote in the upcoming U.S. presidential election in November. The social media giant's latest initiative is expected to help 4 million voters register this year, and help them navigate a 'confusing election process'. Epic Games Inc., the developer of popular game Fortnite, has filed lawsuits against both Apple Inc. and Google after they removed the game from their app stores. The development reflects disputes related to app store fee the tech giants take from each purchase. Epic Games, which has been against the 30 percent revenue cut the two tech giants take from paid apps, added a direct payment option.
Follow RTT