Bank of America Earnings: Profit Dips as Deposits Climb
S&P 500 (NYSE:SPY) component Bank of America Corporation (NYSE:BAC) reported a lower net income in third quarter, missing analysts’ estimates. Bank of America is a bank holding and a financial holding company which, through its subsidiaries, provides banking and other financial services and products to customers in the United States and abroad.
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Bank of America Corporation Earnings Cheat Sheet
Results: Net income for Bank of America Corporation fell to $340 million (0 cents per share) vs. $6.23 billion (56 cents per share) a year earlier. This is a decline of 94.5% from the year-earlier quarter.
Actual vs. Wall St. Expectations: Bank of America Corporation fell short of the mean analyst estimate of 13 cents per share.
Quoting Management: “We are doing more business with our customers and clients: Deposits are up; mortgage originations are up; we surpassed 11 million in mobile customers; small business lending is up 27 percent year over year; loans to our commercial clients rose for the seventh consecutive quarter; and our corporate clients made us the second-ranked global investment banking firm,” said Brian Moynihan, chief executive officer. “Our strategy is taking hold even as we work through a challenging economy and continue to clean up legacy issues.”
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the second quarter, it topped the mark by 4 cents, and in the first quarter, it was ahead by 18 cents.
Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 22 cents per share to 19 cents. Over the past sixty days, the average estimate for the fiscal year has reached 54 cents per share, a decline from 65 cents.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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