BAC revenue in Q2 2021

Brian Moynihan, CEO, Bank of America

Scott Mlyn | CNBC

Bank of America stocks fell after posting sales below analysts’ expectations in the second quarter.

This is how the bank did it:

Earnings: $ 1.03 per share including a one-time tax break of $ 2 billion. It wasn’t immediately clear how that number compares to the 77-cent estimate made by the analysts surveyed by Refinitiv.

Revenue: $ 21.6 billion, just below the estimate of $ 21.8 billion.

Bank of America said revenue was down year over year due to a 6% decrease in net interest income due to lower interest rates. Lower trading revenues and the lack of a profit of $ 704 million last year also impacted revenues, the bank said.

The shares lost 2.3% in pre-market trading.

Like other lenders, Bank of America provided billions of dollars in loan losses last year as the industry anticipated a wave of defaults related to the coronavirus pandemic. Instead, government stimulus programs appear to have prevented most of the feared losses, and banks have started releasing reserves this year.

The lender said it saw a $ 1.6 billion increase in the second quarter as it released reserves amid an improved US economic outlook.

However, given the industry’s sluggish credit growth this year, analysts will want to hear CEO Brian Moynihan’s outlook for credit in the second half of the year. The bank announced on Wednesday that its loan book had grown in the second quarter for the first time since early 2020.

On Tuesday, JPMorgan Chase and Goldman Sachs each released results that exceeded expectations, aided by strong revenues from Wall Street advisory activities.

Bank of America stocks are up 31% ahead of Wednesday this year, outperforming the 16% gain of the S&P 500 index.

This story evolves. Please check again for updates.

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