HomeFinanceBank of America (BAC) earnings Q3 2021

Bank of America (BAC) earnings Q3 2021

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 Pictures

Financial institution of America posted third-quarter outcomes that exceeded analysts’ expectations because it benefited from better-than-expected mortgage losses and document advisory and asset administration charges.

Listed below are the numbers:

Earnings: 85 cents a share vs the 71 cents a share estimate of analysts surveyed by Refinitiv
Income: $22.87 billion vs the $21.8 billion estimate

Revenue surged 58% to $7.7 billion, or 85 cents a share, as income climbed 12% to $22.87 billion. That determine, greater than $1 billion increased than anticipated, was helped by a $1.1 billion reserve launch that led to a $624 million enhance. Shares of the financial institution climbed 2.6% in premarket buying and selling.

“We reported robust outcomes because the financial system continued to enhance and our companies regained the natural buyer progress momentum we noticed earlier than the pandemic,” CEO Brian Moynihan stated within the launch. “Deposit progress was robust and mortgage balances elevated for the second consecutive quarter, resulting in an enchancment in internet curiosity earnings at the same time as rates of interest remained low.”

Internet curiosity earnings, a carefully watched determine for banks, jumped 10% to $11.1 billion, exceeding the $10.6 billion StreetAccount estimate.

Traders had needed to see mortgage progress enhance from a weak first half of the yr as a result of that helps banks produce extra curiosity earnings. Certainly, mortgage balances elevated 9% on an annualized foundation from the second quarter, pushed by energy in industrial loans, the financial institution stated.

Like different lenders, Financial institution of America put aside billions of {dollars} for credit score losses final yr, when the business anticipated a wave of defaults tied to the coronavirus pandemic. Banks have been releasing a few of these funds when the losses did not arrive, and analysts will likely be curious how a lot of a lift that dynamic could have within the second half of the yr.

They can even probably ask CEO Brian Moynihan about succession planning after his most senior deputy, chief working officer Tom Montag, introduced his departure. Final month, Moynihan introduced a sweeping administration overhaul, together with a brand new finance chief, know-how head, common counsel and chief administrative officer.

Shares of Financial institution of America have climbed 42% this yr earlier than Thursday, exceeding the 36% achieve of the KBW Financial institution Index.

On Wednesday, larger rival JPMorgan Chase posted outcomes that beat expectations, pushed by a $1.5 billion enhance from better-than-expected mortgage losses.

This story is growing. Please test again for updates.

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