{"id":121328,"date":"2021-04-15T13:11:45","date_gmt":"2021-04-15T13:11:45","guid":{"rendered":"https:\/\/precoinnews.com\/?p=121328"},"modified":"2021-04-15T13:11:45","modified_gmt":"2021-04-15T13:11:45","slug":"bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release\/","title":{"rendered":"Bank of America profit more than doubles on trading gains, reserve release"},"content":{"rendered":"

(Reuters) -Bank of America Corp\u2019s quarterly profit more than doubled as it released reserves it had set aside to cover potential coronavirus loan losses and recorded big gains in trading that offset weakness in consumer banking.<\/p>

FILE PHOTO: A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS\/Carlo Allegri\/File Photo<\/figcaption>

America\u2019s second largest bank unlocked $2.7 billion from its reserves and unveiled a $25 billion stock repurchase plan, betting on a swift economic recovery on the back of rapid vaccinations.<\/p>\n

Consumer banking revenue, however, fell 12% in the quarter ended March as appetite for loans waned, while net interest income, a key measure of how much the bank can make from lending, fell 16% on low interest rates.<\/p>\n

\u201cWhile low interest rates continued to challenge revenue, credit costs improved and we believe that progress in the health crisis and the economy point to an accelerating recovery,\u201d Brian Moynihan, the bank\u2019s chairman and chief executive, said in a statement.<\/p>\n

\u201cWe believe reserves will continue to come down,\u201d Chief Financial Officer Paul Donofrio said on a call with media.<\/p>\n

The Federal Reserve last year brought in ultra-low interest rates to allow for a more rapid recovery from the pandemic-induced recession. However, such low rates eat into the income of lenders like Bank of America, which make profit from the difference between what they earn on loans and pay out on deposits.<\/p>\n

Bank of America\u2019s pre-tax, pre-provision profit, seen this quarter as a better gauge of lenders\u2019 true performance, amounted to 68 cents per share, according to Refinitiv. Analysts on average had expected a profit of 66 cents per share.<\/p>\n

\u201cThe beat came from where you\u2019d think – strong capital markets & a $2.7 billion reserve release,\u201d EvercoreISI analyst Glenn Schorr wrote in a note to clients. \u201cThough (net interest income) was in line (and down ~1% q\/q) and expenses were higher than expected.\u201d<\/p>\n

The pre-tax, pre-provision profit number for Bank of America was down 21% from a year earlier. In contrast, JPMorgan Chase & Co said on Wednesday its first quarter pre-provision profit was up 18%.<\/p>\n

But like JPMorgan, which reported earnings earlier in the week, loans and lease balances fell across Bank of America\u2019s divisions by 7% to $887 billion, driven mostly by lower credit card balances and declines in commercial loans.<\/p>\n

The bank\u2019s executives said in January they were optimistic the bank could return to loan growth this year. Appetite for new loans waned during the pandemic as customers spent less and saved more and large companies relied on capital markets for funds rather than their bank.<\/p>\n

The bank reported higher credit card net charge-offs in the quarter, but said this would decline in the current quarter, citing recent positive delinquency trends.<\/p>\n

Bank of America\u2019s shares rose more than 1% in premarket trade.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

(Reuters) -Bank of America Corp\u2019s quarterly profit<\/p>\n","protected":false},"author":3,"featured_media":121327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23051],"tags":[],"yoast_head":"\nBank of America profit more than doubles on trading gains, reserve release - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/business\/bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of America profit more than doubles on trading gains, reserve release - Pre Coin News\" \/>\n<meta property=\"og:description\" content=\"(Reuters) -Bank of America Corp\u2019s quarterly profit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/precoinnews.com\/business\/bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release\/\" \/>\n<meta property=\"og:site_name\" content=\"Pre Coin News\" \/>\n<meta property=\"article:published_time\" content=\"2021-04-15T13:11:45+00:00\" \/>\n<meta name=\"author\" content=\"mediabest\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/precoinnews.com\/wp-content\/uploads\/2021\/04\/Bank-of-America-profit-more-than-doubles-on-trading-gains-reserve-release.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"mediabest\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/precoinnews.com\/business\/bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release\/\",\"url\":\"https:\/\/precoinnews.com\/business\/bank-of-america-profit-more-than-doubles-on-trading-gains-reserve-release\/\",\"name\":\"Bank of America profit more than doubles on trading gains, reserve release - 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