Bank of America posts quarterly profit that exceeds analysts’ expectations but revenue falls short

Earnings

Brian Moynihan, Bank of America, speaking at the WEF at Davos, January 21, 2020

CNBC

Bank of America is scheduled to report fourth-quarter earnings before the opening bell on Tuesday.

Here’s what Wall Street expects:

Earnings: 55 cents a share, 26% lower than the year-earlier period, according to Refinitiv.
Revenue: $20.7 billion, 8.1% lower than a year earlier.
Net Interest Margin: 1.74%
Trading Revenue: Fixed Income $2.11 billion, Equities $1.22 billion

Will Bank of America join rivals by posting results that benefit from an improving credit picture?

That’s what analysts and investors are wondering after JPMorgan Chase and Citigroup each posted profit that beat analysts’ expectations as the firms released a combined $4.4 billion in loan-loss reserves.

Bank of America, the second-biggest U.S. lender by assets, had booked $11.3 billion worth of credit loss provisions in the first three quarters of 2020.

Like JPMorgan, which posted record fourth-quarter results in its investment bank, Bank of America could also see a boost from its trading operations.

Early Tuesday, Bank of America said that it planned to repurchase $2.9 billion in shares in the first quarter, plus about $300 million in shares to offset stock given to employees. It also said it would maintain its 18 cent quarterly dividend.

Shares of Bank of America dropped 15% in 2020, compared with the 4.3% decline of the KBW Bank Index.

This story is developing. Please check back for updates.

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