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Brian Thomas Moynihan, Chairman and CEO of Bank of America, speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee’s oversight hearing on Wall Street Companies on Capitol Hill in Washington, D.C. United States, December 6, 2023.
Evelyn Hockstein | Reuters
Bank of America is expected to report third-quarter results before the opening bell Tuesday.
Here’s what Wall Street expects:
- Profit: 77 cents per share, according to LSEG
- Income: $25.3 billion, according to LSEG
- Net interest income: $14.06 billion, based on FTEs, according to StreetAccount
- Trading revenue: $2.74 billion in fixed income, $1.81 billion in equities, according to StreetAccount
How quickly will Bank of America benefit from lower interest rates?
That’s a key question after the lender signaled in July that a rebound in net interest income would occur in the second half of this year.
Bank of America has seen its net interest income shrink as the Federal Reserve raised rates over the past two years. Now that the Fed is easing rates, analysts will want to understand what impact this will have on the bank.
NII, which is one of the main ways banks make money, represents the difference between what a bank earns on loans and investments and what it pays depositors for their savings.
JPMorgan Chase and Wells Fargo reported better-than-estimate profits on Friday, helped by their investment banking operations. Goldman Sachs And Citi Group are also expected to release their results on Tuesday, while Morgan Stanley will reveal its results on Wednesday.
This story is developing. Please check again for updates.