Brian Moynihan, CEO, Bank of America
Scott Mlyn | CNBC
Bank of America is scheduled to report third-quarter earnings before the opening bell Monday.
The firm generated $20.45 billion in revenue, missing the $20.8 billion estimate of analysts surveyed by Refinitv.
Here’s what Wall Street expected:
Earnings: 49 cents a share, 12% lower than the year earlier period, according to Refinitiv.
Revenue: $20.8 billion, 9.4% lower than a year earlier.
Net Interest Margin: 1.82%
Trading Revenue: Fixed Income $2.28 billion, Equities $1.2 billion
Will Bank of America join rivals by posting improving results as loan provisions subside?
That’s what analysts and investors are wondering after JPMorgan Chase and Citigroup each posted results that beat analysts’ expectations as the firms set aside less money for defaulting loans.
Bank of America, the second-biggest U.S. lender by assets, has booked a total $9.8 billion provision for credit losses in the first two quarters of 2020. Analysts expect that figure to shrink in the third quarter, just as it has at competitors.
Like JPMorgan, the bank could also see a boost from its trading operations.
Shares of Bank of America have declined 29% so far this year, a slightly better performance than the KBW Bank Index.
This story is developing. Please check back for updates.