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.
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