CEOs from left, Charles Scharf, Wells Fargo, Brian Moynihan, Bank of America, and Jamie Dimon, JPMorgan Chase, testify during the Senate Banking, Housing and Urban Affairs Committee hearing titled “Annual Oversight of Wall Street Firms,” in the Hart Building on Wednesday, Dec. 6, 2023.
Tom Williams | Cq-roll Call, Inc. | Getty Images
- Profit: 83 cents per share versus 80 cents per share estimated by LSEG
- Revenue: $25.54 billion vs. $25.22 billion estimated
The bank said its profit fell 6.9% from the year-earlier period to $6.9 billion, or 83 cents per share, as the company’s net interest income fell amid rising interest rates. Revenue rose less than 1% to $25.54 billion.
Net interest income fell 3% to $13.86 billion, roughly in line with StreetAccount’s estimate. That measure, which is the difference between what the bank earns on loans and what it pays depositors for their savings, will rise to about $14.5 billion in the fourth quarter of this year, Bank of America said in a presentation.
How is Bank of America managing the interest rate environment?
That’s a key question after CEO Brian Moynihan told investors in April that net interest income would bottom out in the second quarter.
This measure, known as NII, is one of the main ways banks make money.
Wells Fargo shares fell Friday after the release of disappointing NII figures, showing how fixated investors are on the metric.
Last week, JPMorgan Chase, Wells Fargo and Citigroup all beat expectations for revenue and profit, a streak continued by Goldman Sachs on Monday, helped by a rebound in activity on Wall Street.
This story is currently developing. Please check back for updates.
News Source : www.cnbc.com
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