In the first quarter, Bank of America lost more than double the forecast because it gained $ 1.9 billion in terms of recovery in terms of loan losses and increased investment banking fees by 2 percent.
The second-largest U.S. bank by assets also said its board had approved a বায় 25 billion share buyback “over time”. Quarterly payments were arranged by the Federal Reserve, which was pushing banks to save capital, and the epidemic depended on the economy.
Bank of America earned just 6 billion in the first three months of 2021, compared to $ 4 billion in the same period a year ago and প্রত্যা 5.2 billion compared to analysts’ expectations.
The biggest difference was in the loan loss charges, which in the first quarter of 2020 the banks incurred মহ 46 billion in profits. Bank of America has recently been able to book a profit of ৯ 1.9 billion because it expects a loan loss below the bumper amount under the accounting rules last year.
“When low interest rates continue to challenge revenue, credit values improve and we believe the health crisis and progress in the economy point to a faster recovery,” chair and chief executive Brian Moynihan described the first quarter as “exceptional” on Thursday.
Buffer results when the mirror pattern set by JP Morgan Chase and Goldman Sachs on Wednesday Kick Wall Street’s earnings season has been above analysts ’expectations with profit growth, lagging behind the recovering U.S. economy and boosting markets for trade and transactions. Citigroup is expected to hold on to the trend when it reports earnings on Thursday.
Buffer’s investment banking fees rose to ২ 2.25 billion from ৯ 1.99 billion a year ago, better than the 57 percent reported by JPMorgan Chase but worse than the 73 percent increase in Goldman Sachs. Buffer’s trading fees rose about 10 percent but its equity desk failed to catch the big lift enjoyed by competitors.
The group’s earnings were flat at $ 22.8bn, pointing to Bank of America’s core nnding and deposit taking business challenges where low interest rates have crushed margins, while epidemic-related uncertainty has forced borrowers to think twice.
Chief Financial Officer Paul Donofrio told reporters that Buffer’s customer bank has been “further affected by the low interest rate environment and the weakness of weakening and is still recovering”.
The department’s revenue fell to ৮ 7.07 billion in the first quarter of 2021 from 9. 9.13bn a year ago, although consumer banking net income still rose nearly 50 percent due to the release of consumer losses.
Donofrio said he expects net interest income to rise and said fourth-quarter net interest income could be b 1bn higher than in the first quarter.
Shares of the bank rose 1.4 percent in pre-market transactions.