Bank of America is set to report third-quarter earnings — here’s what the Street expects

Bank of America is set to report third-quarter earnings — here’s what the Street expects

Bank Of America CEO Brian Moynihan is interviewed by Jack Otter throughout “Barron’s Roundtable” at Fox Business Network Studios on January 09, 2020 in New York City.

John Lamparski | Getty Images

Bank of America is scheduled to report third-quarter earnings earlier than the opening bell Thursday.

Here’s what Wall Street expects:

  • Earnings: 71 cents a share, 39% larger than a 12 months earlier, in accordance to Refinitiv.
  • Revenue: $21.8 billion, 6.5% larger than a 12 months earlier.
  • Net Interest Income: $10.6 billion on a reported foundation, in accordance to StreetAccount
  • Trading Revenue: Fixed Income $1.93 billion, Equities $1.45 billion
  • Investment Banking Revenue: $2 billion

Has mortgage demand at Bank of America turned the nook?

That’s what analysts are questioning about the second-biggest U.S. lender by property. Investors need to see mortgage progress enhance from a weak first half of the 12 months as a result of that can assist the financial institution produce extra curiosity earnings.

Like different lenders, Bank of America set apart billions of {dollars} for credit score losses final 12 months, when the business anticipated a wave of defaults tied to the coronavirus pandemic. Banks have been releasing some of these funds when the losses did not arrive, and analysts can be curious how a lot of a lift that dynamic may have in the second half of the 12 months.

They can even probably ask CEO Brian Moynihan about succession planning after his most senior deputy, chief working officer Tom Montag, announced his departure. Last 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 Bank of America have climbed 42% this 12 months, exceeding the 36% achieve of the KBW Bank Index.

On Wednesday, greater 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 verify again for updates.

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