Bank of America (NYSE: BAC) It reported a second-quarter Thursday that exceeds estimates, but its shares fell due to a generally bleak outlook for the banking sector as the coronavirus pandemic increases and intensifies in most of the United States.
For the quarter, the bank’s revenue reached $ 22.3 billion, which was 3% below its result for the second quarter of 2019. Net profit fell 52% year-over-year to $ 3.5 billion ($ 0.37 per action). Total loans as well as leases and deposits increased, with the former rising 4% to just under $ 1 trillion, and the latter rising 25% to more than $ 1.7 trillion.
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On average, analysts who followed the shares expected $ 21.95 billion on the top line, and a net profit of $ 0.25 per share.
As expected basically by everyone who followed this particular company or the US banking sector Overall, Bank of America’s profitability was further affected by the strong provision for credit losses. This totaled $ 5.1 billion during the quarter, nearly six times the amount you set aside to cover anticipated defaults a year earlier, and more than the $ 4.8 billion allocated for that purpose in the first quarter.
Countering that was the solid performance of the company’s global markets unit, essentially, its securities trading arm, thanks to the solid growth in investment bank fees collected during the quarter. Bond trading fees also increased substantially. That division saw a 29% improvement in total revenue and an 81% jump in net profit.
But as of 3:15 p.m. ET on Thursday, Bank of America was trading down about 3.3%, a sharper decline than that of the major market indices, which at the time fell 0 , 7% to 1,1% on the day.
