Bank of America is set to report third-quarter earnings — here’s what the Street expects
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Bank of America is scheduled to report third-quarter earnings before the opening bell Monday. Here's what Wall Street expects:
Expectations are running high that Bank of America will post gains tied to higher interest rates in the third quarter. That's because rivals JPMorgan Chase and Wells Fargo each disclosed that net interest income had surged more than 30% in the quarter, thanks to rising rates and loan growth.
Bank of America, led by CEO Brian Moynihan, was supposed to be one of the main beneficiaries of the Federal Reserve's rate-boosting campaign. But bank stocks got hammered this year amid concerns a recession was on the way, and Bank of America wasn't spared — it hit a fresh 52-week low on Thursday.
Investors will be eager to see how well the bank's retail and business customers are holding up amid signs that both inflation and higher interest rates are taking a toll on the economy.
Bank of America shares have fallen 29% this year through Friday, worse than the 26% decline of the KBW Bank Index.
Last week, JPMorgan and Wells Fargo topped expectations for third-quarter profit and revenue by generating better-than-expected interest income. Citigroup also beat analysts' estimates, but Morgan Stanley missed as choppy markets took a toll on its investment management business.
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