Bank of America Profit Falls on Higher Provisions

Bank of America announced on Wednesday a 15.8% drop in quarterly profits, as it was hit by higher provisions for credit losses and declining performance in three of the four major sectors.

The second-largest bank in the United States by assets set aside $ 1.4 billion in reserves to cover loan losses, compared with nearly $ 800 million a year ago, as the Covid-19 pandemic ravages the economy.

Net interest income, a key measure of what banks earn from their lending activities, fell 17% to $ 10.1 billion in the third quarter.

Net income attributable to common shareholders fell to $ 4.44 billion, or 51 cents a share, in the quarter ended September 30, from $ 5.27 billion, or 56 cents a share, a year earlier.

Analysts had expected a profit of 49 cents a share, according to I / B / E / S data from Refinitiv.

Revenue fell 11% to $ 20.34 billion.