Bank of America is set to report fourth-quarter earnings — here’s what the Street expects
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Bank of America is scheduled to report fourth-quarter earnings before the opening bell Wednesday. Here's what Wall Street expects:
How has Bank of America navigated the jump in employee expenses that has stung rivals?
That's the question of the moment after JPMorgan Chase, Goldman Sachs and Citigroup all disclosed sharply higher fourth-quarter costs driven by rising worker compensation.
Bank of America, led by CEO Brian Moynihan, had enjoyed tailwinds in recent months as rising interest rates and a rebound in loan growth promised to boost the industry's profitability. But that narrative went off course after banks began disclosing the impact of wage inflation on results.
Analysts are likely to ask management about the impact of the bank's recent decision to eliminate some fees and reduce overdraft charges to $10 from $35.
Shares of Bank of America have climbed 4% this year before Wednesday, underperforming the 8.6% gain of the KBW Bank Index.
JPMorgan and Citigroup each reported the smallest earnings beats in the last seven quarters, and Goldman Sachs missed estimates for fourth quarter profit because of elevated expenses. Wells Fargo has been the sole bright spot so far in bank earnings after it gave targets for higher interest income and lower expenses.
This story is developing. Please check back for updates.
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