Bank of America shares fell Wednesday after thebank posted third-quarter results that missed on revenue, according to a report in CNBC.
Here’s how its third-quarter earnings results panned out:
- Revenue: generated $20.45 billion in total revenue, missing the $20.8 billion estimate of analysts.
- Earnings: Dipped down 16% to $4.9 billion, or 51 cents a share, vs 49 cents estimate.
- Net interest Margin: 1.72%, vs the 1.82% estimate from FactSet.
- Shares: Dropped 5.3% this quarter, or 29% for the year.
The bank’s net interest income fell by 17% in the quarter from a year earlier to $10.2 billion. CEO Brian Moynihan has said that the key figure will likely bottom in the third quarter. The firm also missed on net interest margin, a related metric, which was 1.72%, 10 basis points below the estimate.
The bank said it had a $1.4 billion provision for credit losses in the quarter, much less than the $5.1 billion in the previous period. Bank of America, the second-biggest U.S. lender by assets, has booked a total $9.8 billion provision for credit losses in the first two quarters of 2020.