Bank of America announced on Monday that it achieved quarterly revenue above expectations in the third quarter. Its profit fell following it put more money aside, especially to prepare for a deterioration in the economic situation.
The bank added 378 million dollars (379 million francs) in reserves from August to September, up sharply from 48 million dollars in the previous quarter.
These forecasts nevertheless remain significantly lower than those of $ 1.1 billion made during the same period last year, in the midst of the pandemic.
In its earnings release, Bank of America warns of ‘a deteriorating macroeconomic outlook’. These comments echo those of JPMorgan Chase, Citigroup, Morgan Stanley and Wells Fargo, which released their results last week.
Bank of America’s net profit hit $6.6 billion in the third quarter, down from $7.3 billion a year ago. Reported per share and excluding exceptional items, it was 81 cents, better than expected by Wall Street.
The bank generally showed robust health with a turnover of 24.5 billion dollars (+8%), above market expectations.
“Our US customers remained resilient with strong spending levels, although growth was slower, and maintained strong deposit amounts,” said Bank of America CEO Brian Moynihan.
The company’s net interest income, that is to say the difference between the interest it receives from loans granted to its customers and that which it pays to savers, jumped by 24%.
This increase is partly explained by the rise in interest rates, specifies the bank.
In retail banking, deposits increased by 7%. Debit and credit card spending also increased.
The commissions generated by Bank of America investment bankers, on the other hand, continued to fall, plunging 46% in a context marked by a weak appetite for large mergers and acquisitions or IPOs.
Revenue from the sale and brokerage of stocks, commodities, bonds and currencies increased by 13%.
/ATS
