Bank of America is set to report third-quarter earnings – here’s what the Street expects — SkimNews
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- Bank of America is scheduled to report Q3 earnings before the opening bell Wednesday, one day after the U.S. Treasury Department hit it with a $1.2 billion penalty
- The Treasury penalty reduced net income by 17 cents per share and will inevitably raise questions about whether CEO Brian Moynihan has a handle on controls
- Moynihan, CEO since 2010, spent his early tenure making amends for mortgage-related abuses stemming from the 2008 financial crisis, prompting renewed scrutiny over whether more risk-management issues remain
- On Tuesday, JPMorgan Chase, Goldman Sachs, Citigroup, and Wells Fargo posted mixed results, with JPMorgan missing EPS and revenue estimates for the first time in years
- Wall Street expects BoA to report EPS of $1.10 (LSEG), revenue of $30.69 billion, net interest income of $16.53 billion (StreetAccount), fixed-income trading of $3 billion, and equities trading of $2.8 billion
Why it matters: The 17-cent-per-share penalty reduces BoA's expected $1.10 EPS by roughly 15%, ensuring compliance questions dominate the earnings call rather than the underlying business performance. With JPMorgan already missing estimates the prior day, the fine compounds pressure on Moynihan to reassure investors that risk controls at the second-largest U.S. bank by assets are sound.
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