CEOs from left, Charles Scharf, Wells Fargo, Brian Moynihan, Financial institution of America, and Jamie Dimon, JPMorgan Chase, testify through the Senate Banking, Housing, and City Affairs Committee listening to titled “Annual Oversight of Wall Avenue Companies,” in Hart Constructing on Wednesday, December 6, 2023.
Tom Williams | Cq-roll Name, Inc. | Getty Photographs
Financial institution of America on Tuesday stated second-quarter income and revenue topped expectations on rising funding banking and asset administration charges.
Here is what the corporate reported:
- Earnings: 83 cents a share vs. 80 cents a share LSEG estimate
- Income: $25.54 billion vs. $25.22 billion estimate
The financial institution stated revenue slipped 6.9% from the yr ancient times to $6.9 billion, or 83 cents a share, as the corporate’s web curiosity revenue declined amid larger rates of interest. Income climbed lower than 1% to $25.54 billion.
How is Financial institution of America navigating the rate of interest atmosphere?
That is a key query after CEO Brian Moynihan instructed traders in April that web curiosity revenue would backside within the second quarter.
The measure, generally known as NII, is the distinction between what the financial institution earns on loans and what it pays depositors for his or her financial savings. It is one of many major ways in which banks earn cash.
Wells Fargo shares fell on Friday when it posted disappointing NII figures, displaying how a lot traders are fixated on the metric.
Final week, JPMorgan Chase, Wells Fargo and Citigroup every topped expectations for income and revenue, a streak continued by Goldman Sachs on Monday, helped by a rebound in Wall Avenue exercise.
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