In the third quarter of 2024, Wall Street's largest banks recorded a notable rebound, driven by increased corporate activity in debt issuance and mergers. Many of these banks reported strong trading performances, which helped offset uneven consumer banking results to some extent.Collectively, Goldman Sachs (GS) , Bank of America (BAC) , Citigroup (C) , and JPMorgan Chase (JPM) reported combined investment banking fees of $6.5 billion, a 27% increase year-over-year. Combined trading revenue for these banks r ...

Earnings season has kicked off, and as usual, the banking and finance sector pushes the envelope first to show investors where the next market trend might be headed. Considering that financial services and markets make up a large portion of the United States economy, investors need to be able to understand what banking earnings mean.When it comes to the sector, there are two main types of banks: investment banks and commercial banks. The former deals more with corporate finance, departments like sales and t ...

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Interest rate cuts might have been on the mind of the Wall St. analysts gathered for the Bank of America third-quarter earnings call today (Oct. 15), but digital transformation and healthy consumer spending turned out to be the stars of the show. As Bank of America CEO Brian Moynihan told the call’s audience, he sees consumer payments as the key indicator of the banks and the economy’s financial health, and those payments were up 5% year-over-year for the quarter. Moynihan and CFO Alistair Borthwick deflect ...

Key TakeawaysLarge U.S. banks such as JPMorgan and Bank of America exceeded quarterly earnings expectations.Asset and wealth management divisions benefited from surging U.S. stock and bond markets.Most large banks increased their cushion for potential credit losses, a possible red flag for the U.S. economy. Large U.S. banks exceeded profit expectations in the third quarter. But most also set aside more money for potential credit losses, a possible warning sign for the economy. JPMorgan Chase (JPM), Wells Fa ...

Financial Data and Key Metrics Changes - Bank of America generated $25.5 billion in revenue and earned $6.9 billion in net income after tax for Q3 2024, with year-to-date net income exceeding $20 billion [8][10] - Earnings per share for the quarter was $0.81, with a modest revenue growth from Q3 2023, driven by improvements in noninterest income [9][10] - Net interest income (NII) grew 2% this quarter, marking a trough in Q2 2024, with expectations for further growth in Q4 [9][25] Business Line Data and Key Metrics Changes - Wealth and investment management business saw healthy revenue growth, with investment banking fees increasing by 18% year-over-year and sales and trading revenue up 12% [10][34] - Consumer banking led organic growth, adding 360,000 net new checking accounts in Q3, totaling over 880,000 for the first nine months of 2024 [12][30] - Global markets recorded the 10th consecutive quarter of year-over-year growth in sales and trading, with a 35% improvement in sales and trading revenue over the past three years [14][37] Market Data and Key Metrics Changes - Total deposits grew by $20 billion, with average deposits increasing for the fifth consecutive quarter [19][22] - Commercial loans grew by 2% year-over-year, with a notable drop in commercial real estate loans of 6% [23] - The average loans in Q3 reached $1.06 trillion, driven by solid growth in commercial loans, credit card, and vehicle loans [23] Company Strategy and Development Direction - The company remains committed to responsible growth, focusing on driving market share and investing in technology to enhance customer experience [17][66] - There is an emphasis on organic growth across all business lines, with a focus on customer engagement and digital capabilities [12][15] - The company aims to return to operating leverage as NII grows and expense discipline is maintained, with expectations for improved efficiency in 2025 [28][72] Management's Comments on Operating Environment and Future Outlook - Management noted a stable economic environment with low unemployment and steady wage growth, which bodes well for consumer asset quality [6][7] - There are concerns about external factors affecting the business, but management sees great opportunities for continued growth [17] - The company expects NII to grow in Q4 2024, setting a positive outlook for 2025 [25][70] Other Important Information - The company returned $5.6 billion of capital to shareholders, including $2 billion in common dividends and $3.5 billion in share repurchases [20][66] - The effective tax rate for the quarter was 6%, with a higher rate of approximately 24% when excluding discrete items [39] Q&A Session Summary Question: NII trajectory beyond Q4 - Management indicated confidence in NII growth for Q4 and a positive outlook for 2025, emphasizing the importance of organic growth and deposit stability [40][42] Question: Impact of rate environment on deposit growth - Management acknowledged that while consumer deposits have seen some shrinkage, overall stability is present, with strong growth in net new checking accounts [43][45] Question: Global banking loan demand - Management noted a modest pickup in corporate loan demand late in the quarter, driven by small business and commercial banking clients [54][55] Question: Share buyback outlook - The company plans to continue share buybacks, having returned $3.5 billion this quarter, while maintaining a focus on supporting clients and growing dividends [64][66] Question: Efficiency ratio concerns - Management acknowledged the current pressure on the efficiency ratio due to incentive compensation but expects improvements as NII growth materializes [70][72]

Bank of America (BAC) reported $25.35 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 0.7%. EPS of $0.81 for the same period compares to $0.90 a year ago.The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $25.29 billion. With the consensus EPS estimate being $0.78, the EPS surprise was +3.85%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Bank of America’s (BAC) third-quarter 2024 earnings of 81 cents per share surpassed the Zacks Consensus Estimate of 78 cents. The bottom line compared unfavorably with 90 cents earned in the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Shares of the company gained almost 1.5% in pre-market trading on better-than-expected results, driven by solid capital markets performance.Behind BAC’s Headline NumbersTotal investment banking (IB) fees (in the Global Banking di ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Bank of America (BAC) came out with quarterly earnings of $0.81 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this nation's second-largest bank would post earnings of $0.79 per share when it actually produced earnings of $0.83, delivering a surprise of 5.06%.Over the last four quar ...