CEOs Charles Scharf, from left, Wells Fargo, Brian Moynihan, Bank of America and Jamie Dimon, JP Morgan Chase, testify during a Senate Banking, Housing and Urban Affairs Committee hearing on “Annual Oversight of Wall Street Firms” at the Hart Building. Wednesday, December 6, 2023.
Tom Williams | Cq-roll Call, Inc. | Good pictures
- Earnings: 83 cents a share vs. LSEG estimate of 80 cents a share
- Revenue: $25.54 billion versus $25.22 billion estimate
The bank’s profit fell 6.9% from a year earlier to $6.9 billion, or 83 cents a share, as the company’s net interest income fell amid higher interest rates. Revenue rose less than 1% to $25.54 billion.
The company was helped by a 29% increase in investment banking fees to $1.56 billion, beating Street accounts estimates of $1.51 billion. Asset management fees rose 14% to $3.37 billion, boosted by higher stock market valuations, which helped the firm’s wealth management division grow 6.3% in revenue to $5.57 billion, basically matching estimates.
Net interest income fell 3% to $13.86 billion, in line with Street estimates.
But the new guidance from the measure, known as the NII, gave investors hope that a turnaround was in the offing. NII is one of the main ways banks make money.
Bank of America said in a slide that the difference between making bank loans and paying for depositors’ savings will rise to about $14.5 billion in the fourth quarter of this year. presentation. Executives told investors in April that net interest income would decline in the second quarter.
Wells Fargo shares fell on Friday after it released disappointing NII figures, showing how investors are fixated on the metric.
Shares of Bank of America rose 2% in pre-market trade, helped by NII guidance.
Last week, JPMorgan Chase, Wells Fargo and Citigroup topped expectations for earnings and profits, a streak that Goldman Sachs continued on Monday, helping Wall Street activity again.
This story is developing. Check back for updates.
