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Anonymous ID: 99e5c8 July 16, 2020, 6:46 a.m. No.9978650   🗄️.is 🔗kun   >>8792 >>8839

Bank of America Profit Falls 52% on Loan Concerns

 

Bank of America Corp.'s profit tumbled 52% in the second quarter after the bank set aside billions of dollars to prepare for soured loans.

 

The Charlotte, N.C.-based bank said Thursday that it earned $3.53 billion, versus the $7.35 billion it made a year earlier. Per share, earnings of 37 cents were above the 28 cents that analysts polled by FactSet had forecast.

 

Profits were hit by an increase in the bank's provision for loan losses, reflecting concern across the banking industry that the recession resulting from the coronavirus pandemic will be worse than initially thought. The bank set aside $5.12 billion on top of the $4.76 billion it put away last quarter. This recession has been unusual in that the federal government has provided unprecedented stimulus to help companies and consumers, and lenders have let customers temporarily skip debt payments. But bank executives are expecting defaults ahead as those programs wear off and the economy remains partially shut.

 

JPMorgan Chase & Co., Citigroup Inc. and Wells Fargo & Co., the other biggest U.S. banks, collectively socked away $28 billion in the second quarter for loan losses. Bank of America, the second-largest U.S. bank by assets, has a giant U.S. customer base that makes it especially sensitive to the state of the economy. The bank posted revenue of $22.33 billion, down about 3% from last year. A bright spot was the bank's capital markets businesses. Extreme market turbulence in March was followed by buoyant stock and bond markets in the second quarter.

 

Adjusted trading revenue of $4.41 billion was up 35% from $3.27 billion a year ago. Wild markets also powered trading at rivals including JPMorgan and Goldman Sachs Group Inc.

https://www.morningstar.com/news/dow-jones/202007164210/bank-of-america-profit-falls-52-on-loan-concerns-update

 

Morgan Stanley profit jumps 45% on trading boom

 

Morgan Stanley posted a better-than-expected surge in quarterly profit on Thursday, driven by strong trading gains as the coronavirus pandemic drove record swings in global financial markets.

 

The bank's trading unit recorded a 68% jump in revenue, led by a nearly 168% surge in bond trading. Equities trading revenue rose 23%. The results mirrored those of rival Goldman Sachs Holdings Inc, which posted its best trading revenue in a decade. Investment banking was another bright spot for Morgan Stanley, where revenue jumped 39% as businesses continued to access the market to benefit from the lower rate environment and to raise liquidity. Morgan Stanley set aside $239 million as provisions for credit losses, down from $407 million in the previous quarter.

 

The bank's earnings attributable to common shareholders rose to $3.2 billion, or $1.96 per share, in the second quarter ended June 30, from $2.2 billion, or $1.23 per share, a year ago.

https://www.foxbusiness.com/markets/morgan-stanley-second-quarter-2020-earnings-coronavirus