Bank of America shares drop as the firm sets aside another $4 billion for loan losses
The lender increased reserves for credit losses by $4 billion, and lower interest rates sapped interest income by 11%.
The bank said it generated earnings of $3.5 billion, or 37 cents a share, exceeding the 27 cents a share expected by analysts surveyed by Refinitiv.
However, revenue of $22.5 billion barely edged out analysts’ estimate of $22 billion.
Bank of America’s trading division helped offset the drag caused by the coronavirus pandemic, although the firm’s trading results were less eye-popping than rivals JPMorgan Chase and Goldman Sachs.
Bank of America’s bond trading revenue climbed 50% to $3.2 billion, and equities trading revenue climbed 7% to $1.2 billion.