March 2, 2024

Brian Moynihan, Bank of America, speaks at the WEF in Davos on January 21, 2020


Bank of America is expected to post fourth quarter earnings ahead of Tuesday’s opening bell.

Here’s what Wall Street expects:

Result: 55 cents per share, 26% less than in the same period last year, according to Refinitiv.
Revenue: $ 20.7 billion, down 8.1% from a year earlier.
Net interest margin: 1.74%
Trading Revenue: Fixed Income $ 2.11 billion, Equities $ 1.22 billion

Will Bank of America join its competitors in posting results that benefit from an improved credit picture?

This is what analysts and investors are wondering after JPMorgan Chase and Citigroup each posted profits that exceeded analysts’ expectations when the companies combined raised $ 4.4 billion in credit risk reserves.

Bank of America, the second largest U.S. lender by assets, posted $ 11.3 billion in loan loss provisions in the first three quarters of 2020.

Like JPMorgan, which posted record fourth-quarter results for its investment bank, Bank of America could see its trading activity spike.

Early Tuesday, Bank of America announced that it was planning to repurchase shares valued at $ 2.9 billion and approximately $ 300 million worth of shares in the first quarter in exchange for the shares made available to employees balance. It also said it would keep its quarterly dividend of 18 cents.

Bank of America stocks fell 15% in 2020, compared with the KBW Bank Index’s 4.3% decline.

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