Bank of America (BAC) 2Q 2022 earnings

Bank of America (BAC) 2Q 2022 earnings

Bank of America on Monday posted combined second-quarter outcomes that included the profit from rising rates of interest and about $425 million in bills tied to regulatory issues.

Listed here are the numbers:

  • Earnings: 73 cents a share. Estimate in line with Refinitiv was 75 cents a share
  • Income: $22.79 billion, vs. $22.67 billion

Shares of the lender dipped 1.7% in premarket buying and selling.

Bank of America, led by CEO Brian Moynihan since 2010, had loved tailwinds as rising rates of interest and a rebound in mortgage development boosted earnings. However financial institution shares received hammered this 12 months amid issues that top inflation will spark a recession, which might result in larger mortgage defaults.

Moreover, broad declines throughout monetary property have begun to indicate up in financial institution ends in the quarter, with Wells Fargo saying that “market conditions” pressured it to submit a $576 million impairment on fairness holdings.

JPMorgan mentioned final week it had a $257 million writedown on bridge loans for leveraged buyout purchasers. For its half, Bank of America CFO Alastair Borthwick mentioned final month that the financial institution will probably submit a $150 million writedown on its buyout loans.

Bank of America shares have fallen 28% this 12 months via Friday, worse than the 16% decline of the KBW Bank Index.

Final week, JPMorgan and Wells Fargo posted second-quarter revenue declines because the banks put aside extra funds for anticipated mortgage losses, whereas Morgan Stanley disenchanted after a bigger-than-expected slowdown in funding banking. Citigroup was the only agency to high expectations for income because it benefited from rising charges and powerful buying and selling outcomes.

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