Bank of America CEO Brian Moynihan was interviewed by Jack Ott during the “Barron Roundtable” held at the Fox Business Network Studio in New York City on January 9, 2020.
John Lampaski | Getty Images
The following are the numbers:
Earnings: 85 cents per share, compared to 71 cents for analysts surveyed by Refinitiv
Revenue: $22.87 billion, compared to $21.8 billion expected
This is what Wall Street expected:
- Earnings: According to data from Refinitiv, earnings per share were 71 cents, an increase of 39% over the same period last year.
- Revenue: USD 21.8 billion, an increase of 6.5% year-on-year.
- Net interest income: According to StreetAccount’s report, it was 10.6 billion US dollars
- Trading income: US$1.93 billion in fixed income, US$1.45 billion in stocks
- Investment banking revenue: US$2 billion
Has Bank of America’s loan demand improved?
This is the doubt that analysts have about the second largest bank in the United States in terms of assets. Investors want to see an improvement in the weak loan growth in the first half of the year, as this will help banks generate more interest income.
Like other lenders, Bank of America set aside billions of dollars for credit losses last year, when the industry expected a wave of defaults related to the coronavirus pandemic. When the loss has not yet come, the bank has been releasing some of the funds, and analysts will be curious how much this dynamic will have a boost in the second half of this year.
They may also ask about his succession plan after CEO Brian Moynihan’s top deputy and chief operating officer Tom Montag announces his departure. Last month, Moynihan announced a comprehensive management reform, including new treasurers, technical directors, general counsel and chief administrative officers.
Bank of America shares have risen 42% this year, surpassing the 36% gain of the KBW Bank Index.
On Wednesday, bigger rival JP Morgan Chase reported more than expected results, which was boosted by $1.5 billion due to better-than-expected loan losses.
This story is developing. Please check for updates.
Become a smarter investor CNBC Professional Edition.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Register to start one Try it for free today.