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Shares in US lender Bank of America, the second-biggest US bank by its assets, are trading a little lower pre-market on Monday. Last week, the US bank reported its third-quarter earnings. While the headline earnings per share figure was slightly better than expected at $0.50 versus estimates for a $0.49 reading, the EPS was down 16% o the same period a year prior.
Revenues Miss Expectations
Revenues were slightly lower than expected over the quarter at $20.45 billion. This undershot expectations of a $20.8 billion reading. Bank of America reported that its net interest income fell by 17% over the quarter to $10.2 billion. The bank has been heavily affected by lower interest rates in the US, as a result of its vast deposit base which analysts have long cited as a threat to the bank’s income stream given the current climate. The bank’s net interest margin was 1.72% over the quarter, undershooting estimates by 0.10%.
Trading Revenues Drop
Disappointingly for the bank and its shareholders,...
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