1. Bank of America profit falls 19.4 per cent as provisions rise

Bank of America profit falls 19.4 per cent as provisions rise

Bank of America Corp, the second-largest U.S. bank by assets, reported a 19.4 percent fall in quarterly profit on Monday as it set aside more money to cover potential bad loans and earned less on its loans.

By: | Updated: July 18, 2016 5:46 PM
Net income attributable to the bank's common shareholders fell to .87 billion, or 36 cents per share, in the second quarter ended June 30, from .80 billion, or 43 cents per share, a year earlier. (Reuters) Net income attributable to the bank’s common shareholders fell to .87 billion, or 36 cents per share, in the second quarter ended June 30, from .80 billion, or 43 cents per share, a year earlier. (Reuters)

Bank of America Corp, the second-largest U.S. bank by assets, reported a 19.4 percent fall in quarterly profit on Monday as it set aside more money to cover potential bad loans and earned less on its loans.

Net income attributable to the bank’s common shareholders fell to $3.87 billion, or 36 cents per share, in the second quarter ended June 30, from $4.80 billion, or 43 cents per share, a year earlier.

Provisions for bad loans rose 25 percent to $976 million and net interest income fell 12 percent to $9.2 billion.
Analysts on average had expected earnings of 33 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the figures were comparable.

Bank of America, headed by Chief Executive Brian Moynihan, had been expected to be one of the worst-performing banks in the quarter, in part due to its large exposure to the energy sector.

Of the other big U.S. banks that have reported so far, JPMorgan Chase & Co’s profit fell 1.6 percent, Citigroup Inc’s 14 percent and Wells Fargo & Co’s 3.5 percent.

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