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July 16, 2020, 7:06 a.m. EDT

Bank of America profit slides as it boosts loan loss provisions, but results top estimates

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By Ciara Linnane

Bank of America Corp. /zigman2/quotes/200894270/composite BAC -3.47% said Thursday it had net income of $3.5 billion, or 37 cents a share, in the second quarter, down from $7.3 billion, or 74 cents a share, in the year-earlier period. The number was weighed down by a $4 billion build in loan loss provisions during the coronaivirus pandemic. Revenue fell to $22.3 billion from $23.1 billion. The FactSet consensus was for EPS of 28 cents and revenue of $21.8 billion. "Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business," Chief Executive Brian Moynihan said in a statement. Net interest income fell 11% to $10.8 billion, driven by lower interest rates. Non-interest income rose 5% to $11.5 billion, buoyed by strong capital markets results. Sales and trading revenue rose 28% to $4.2 billion, as FICC (fixed income, currencies and commodities) revenue climbed 50% to $4.2 billion and equities revenue rose 7% to $1.2 billion. Investment banking fees rose 57% to a record $2.2 billion, amid record capital raising by companies seeking to bolster liquidity during the pandemic. Shares fell 2% premarket and are down 30% in the year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.70% has fallen 0.1%.

/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 24.34
-0.88 -3.47%
Volume: 54.60M
Sept. 21, 2020 3:25p
P/E Ratio
11.65
Dividend Yield
2.97%
Market Cap
$218.42 billion
Rev. per Employee
$543,289
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/zigman2/quotes/210599714/realtime
US : S&P US
3,263.01
-56.46 -1.70%
Volume: 2.11B
Sept. 21, 2020 3:26p
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