The country’s four largest banks are reporting their financial results a day later on Thursday. JPMorgan Chase Earnings season got off to a good start.
Bank of America posted a profit of $7.7 billion, or 85 cents per share, for the three-month period ended September, beating analysts’ expectations. The bank’s deal makers pulled in a record advisory fee of $654 million, echoing their counterparts at JPMorgan, which also cashed in on a hot market for mergers and acquisitions.
“We have reported strong results as the economy continues to improve,” said Brian Moynihan, chief executive officer of Bank of America. Statement.
At Wells Fargo, profit was $5.1 billion, or $1.17 per share, which also beat analyst estimates. Wells Fargo’s chief executive, Charles W. Scharf said the bank was focused on fixing its problems after being slapped. $250 million fine on mortgage practices and a stinging rebuke from a banking regulator last month. It was the latest in a series of penalties the bank has faced for its conduct, including a fake account scam which lasted for more than a decade.
Those actions “were a reminder that critical deficiencies that existed upon my arrival should remain our top priority,” Mr Scharf said in a Statement.
Included in both banks’ profits were funds released from stockpiles they built up early in the pandemic to hedge against a surge in loan defaults that never materialized. Bank of America issued $1.1 billion and Wells Fargo $1.7 billion.
Citigroup and Morgan Stanley were also reporting earnings on Thursday.
On Wednesday, the nation’s largest bank, JPMorgan, beat analysts’ expectations with earnings of $11.7 billion, or $3.74 per share, driven by record performance by its deal-makers advising on mergers and acquisitions.