Bank of America Third-Quarter Profit Fell on Charge -- Update
16 Ottobre 2019 - 02:00PM
Dow Jones News
By Rachel Louise Ensign
A one-time charge dented Bank of America Corp.'s third-quarter
profit, but the bank posted gains in its consumer, wealth and
commercial businesses.
Quarterly profit at the Charlotte, N.C.-based bank, the second
largest in the U.S. by assets, was $5.78 billion, compared with
$7.17 billion a year ago. Per share, earnings were 56 cents.
Analysts polled by FactSet had expected 54 cents per share.
Earnings were hit by a $2.1 billion charge related to the coming
dissolution of the bank's payment-processing partnership with First
Data Corp.
Third-quarter revenue was $22.81 billion, up from $22.72 billion
a year ago. Analysts had expected $22.58 billion.
Profit rose in the bank's consumer banking, wealth and
commercial units, but fell in the division that houses sales and
trading.
Bank of America benefited from the series of interest-rate
increases from the Federal Reserve that began in late 2015. That is
because the bank was able to charge borrowers more interest without
having to significantly increase payouts to depositors.
But now the Fed is moving in the other direction: It cut rates
twice in the third quarter. That weighed on the bank's lending
businesses. Net interest income rose 1% from a year earlier and
held steady from the prior quarter.
Net interest margin fell to 2.41% from 2.44% in the prior
quarter.
Loans were up about 5% and deposits rose about 4% from a year
earlier.
Trading revenue rose 4%.
Write to Rachel Louise Ensign at rachel.ensign@wsj.com
(END) Dow Jones Newswires
October 16, 2019 07:45 ET (11:45 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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