Bank of America's Results Slide
July 18 2016 - 6:20AM
Dow Jones News
By Christina Rexrode and Peter Rudegeair
Bank of America Corp. said its quarterly profit fell, as the
second largest U.S. lender by assets was hurt by the continued drag
of low interest rates.
The Charlotte, N.C.-based bank reported a profit of $4.23
billion, or 36 cents a share. That compares with $5.13 billion, or
45 cents a share, in the same period of 2015. Analysts polled by
Thomson Reuters had expected the bank to earn 33 cents a share.
Revenue fell to $20.4 billion from $21.96 billion a year ago.
Adjusted revenue was $20.6 billion. That compared with the $20.41
billion expected by analysts.
Things have been relatively calm for the bank and Chairman and
CEO Brian Moynihan. Last month, it passed the Federal Reserve's
stress test without incident for the first time since 2013. The
crisis-era legal fees that dogged earnings have been receding for a
couple years.
But now Mr. Moynihan, who has led the bank for six and a half
years, is working to pivot to improving earnings, shareholder
returns and the bank's stock price. That task has been made more
difficult of late by long-term bond yields falling, something that
hurts the bank's lending profitability and investments in mortgage
securities.
Bank of America's shares have fallen 19% since the start of the
year, worse than any peer bank and a steeper fall than the 8% drop
in the KBW Nasdaq index of bank stocks.
Write to Christina Rexrode at christina.rexrode@wsj.com and
Peter Rudegeair at Peter.Rudegeair@wsj.com
(END) Dow Jones Newswires
July 18, 2016 07:05 ET (11:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Bank of America (NYSE:BAC)
Historical Stock Chart
From Apr 2024 to May 2024
Bank of America (NYSE:BAC)
Historical Stock Chart
From May 2023 to May 2024