Brian Moynihan, CEO of Financial institution of America Corp., at a Senate Banking, Housing and City Affairs Committee listening to in Washington, DC, September 22, 2022.
Al Drago | Bloomberg | Getty Pictures
financial institution of America posted second-quarter earnings and income on Tuesday that beat expectations as the corporate reaped extra curiosity earnings amid greater rates of interest.
Here is what the corporate reported:
- Earnings: 88 cents per share, versus 84 cents per share Refinitiv estimate
- Income: $25.33 billion, versus anticipated $25.05 billion
Whereas analysts anticipated Financial institution of America to be one of many largest beneficiaries of rising rates of interest, it hasn’t labored out that means. The corporate’s internet curiosity earnings, one of many foremost drivers of a financial institution’s income, has been underneath strain lately as mortgage and deposit progress has slowed.
Shares of Financial institution of America are down about 11% this 12 months, in comparison with the KBW Financial institution Index’s drop of about 20%.
This month, the Shopper Monetary Safety Bureau mentioned it had fined the Charlotte, North Carolina-based financial institution for buyer abuse, together with bogus payments and bogus fees. Analysts might ask CEO Brian Moynihan if the problems have been resolved.
On Friday, JPMorgan Chase, Citi group And Wells Fargo every reported earnings that exceeded analyst expectations at greater rates of interest. Morgan Stanley is scheduled to launch outcomes later Tuesday, and Goldman Sachs rounds up the income of the main banks on Wednesday.
This story is evolving. Verify again later for updates.
