Bank of America

Bank of America profit falls on pandemic woes

Bank of America Corp reported a 15.8% drop in quarterly profit on Wednesday, hit by higher provisions for credit losses and a slump in performance in three of its four chief segments.The bank said it had a $1.4 billion provision for credit losses in the quarter, much less than the $5.1 billion in the previous period. Bank of America.

The second-largest U.S. bank by assets set aside $1.4 billion as reserves to cover loan losses, compared with nearly $800 million a year earlier, as the COVID-19 pandemic hammers the economy.Net interest income, a key measure of how much banks can make from their lending activities, fell 17% to $10.1 billion in the third quarter.CEO Brian Moynihan had said that the key figure will likely bottom in the third quarter.

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.

The Charlotte, North Carolina-based lender is especially vulnerable to rate movements because of the composition of its balance sheet.Net income applicable to common shareholders fell to $4.44 billion, or 51 cents per share, in the quarter ended Sept. 30, from $5.27 billion, or 56 cents per share, a year earlier.

Analysts had expected a profit of 49 cents per share, according to IBES data from Refinitiv. It was not immediately clear if the estimates were comparable.

In technical front, RSI stood is at 51.28, which represents Mildly bullish, in terms of moving averages it is trading below 5 & 50 days MA but trading above 20 days moving average. The stochastic is forming a downside crossover. Overall Bias in negative and short term, sell trades can be initiated with following Stop loss and Targets.

TRADE SIGNAL-NYSE: BANK OF AMERICA SELL at 24.95, Target at24.5, SL at 25.28