Bank of America (BAC) earnings Q3 2021

Bank of America posted third-quarter results that exceeded analysts’ expectations as it benefited from better-than-expected loan losses and record advisory and asset management fees.

 Here are the numbers:

Earnings: 85 cents a share vs the 71 cents a share of analysts surveyed by Refinitiv
Revenue: $22.87 billion vs the $21.8 billion estimate

“We reported strong results as the economy continued to improve and our businesses regained the organic customer growth momentum we saw before the pandemic,” CEO Brian Moynihan said in the release. “Deposit growth was strong and loan balances increased for the second consecutive quarter, leading to an improvement in net interest income even as interest rates remained low.”

Here’s what Wall Street expected:

• Earnings: 71 cents a share, 39% higher than a year earlier, according to Refinitiv.
• Revenue: $21.8 billion, 6.5% higher than a year earlier.
• Net Interest Income: $10.6 billion on a reported basis, according to StreetAccount
• Trading Revenue: Fixed Income $1.93 billion, Equities $1.45 billion
• Investment Banking Revenue: $2 billion

Has loan demand at Bank of America turned the corner?

That’s what analysts are wondering about the second-biggest U.S. lender by assets. Investors want to see loan growth improve from a weak first half of the year because that will help the bank produce more interest income.

Like other lenders, Bank of America set aside billions of dollars for credit losses last year, when the industry anticipated a wave of defaults tied to the coronavirus pandemic. Banks have been releasing some of those funds when the losses didn’t arrive, and analysts will be curious how much of a boost that dynamic will have in the second half of the year.

They will also likely ask CEO Brian Moynihan about succession planning after his most senior deputy, chief operating officer Tom Montag, announced his departure. Last month, Moynihan announced a sweeping management overhaul, including a new finance chief, technology head, general counsel and chief administrative officer.

Shares of Bank of America have climbed 42% this year, exceeding the 36% gain of the KBW Bank Index.

On Wednesday, bigger rival JPMorgan Chase posted results that beat expectations, driven by a $1.5 billion boost from better-than-expected loan losses.

This story is developing. Please check back for updates.