BAC 2Q 2021 results | FR24 News France – .

BAC 2Q 2021 results | FR24 News France – .

Shares of Bank of America fell after posting second quarter earnings below analyst expectations.
Here’s how the bank did it:

Earnings: $ 1.03 per share, including a one-time tax benefit of $ 2 billion. It wasn’t immediately clear how that figure compares to the 77-cent estimate from analysts polled by Refinitiv.

Revenue: $ 21.6 billion, slightly less than the estimate of $ 21.8 billion.

Bank of America said revenue was down from a year ago due to a 6% drop in net interest income due to lower interest rates. Falling trading revenue and the lack of a gain of $ 704 million a year earlier also affected revenue, the bank said.

The shares fell 2.3% in pre-market trading.

Like other lenders, Bank of America set aside billions of dollars for credit losses last year, when the industry anticipated a wave of defaults linked to the coronavirus pandemic. Instead, government stimulus packages appear to have averted most of the feared losses, and banks have started releasing reserves this year.

The lender said it received a boost of $ 1.6 billion in the second quarter as it released reserves amid improving U.S. economic prospects.

Still, given the industry’s weak lending growth this year, analysts will want to hear CEO Brian Moynihan’s outlook for second-half lending. The bank said on Wednesday its loan portfolio increased in the second quarter for the first time since early 2020.

JPMorgan Chase and Goldman Sachs each reported better-than-expected results on Tuesday, helped by strong earnings from Wall Street advisory businesses.

Shares of Bank of America climbed 31% this year before Wednesday, beating the 16% gain in the S&P 500 index.

This story is developing. Please check for updates.

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