Bank of America profit falls 33%, shares drop

Bank of America Corp.
BAC,
+7.04%
shares fell 1.9% on Monday after the bank fell short of Wall Street’s profit estimate, but revenue matched the analyst view. Bank of America’s second-quarter profit fell by a third to $6.2 billion, or 73 cents a share, from $9.2 billion, or $1.03 a share, in the year-ago quarter. Revenue increased to $22.7 billion from $21.5 billion. Bank of America was expected to earn 75 cents a share on revenue of $22.7 billion, according to estimates compiled by FactSet. “We believe our earnings generation over the next 18 months will provide ample capital to support growth, pay dividends, buy back shares and continue to invest in our people, platforms and communities as we grow into new regulatory capital level requirements,” said CFO Alastair Borthwick. Net interest income increased to $12.44 billion, compared to $10.23 billion in the year-ago quarter. Bank of America stock is down 27.5% in 2022, compared to a loss of just under 19% by the S&P 500
SPX,
+1.92%
and a drop of 18.6% by the Financial Select SPDR ETF
XLF,
+3.38%
as of Friday’s close.