Bank of America has today reported a 15.8% drop in quarterly profit, hit by higher provisions for credit losses and a slump in performance in three of its four chief segments.
The second largest US bank by assets set aside $1.4 billion as reserves to cover loan losses, compared with nearly $800m a year earlier, as the Covid-19 pandemic hammers the economy.
Net interest income, a key measure of how much banks can make from their lending activities, fell 17% to $10.1 billion in the third quarter.
The Charlotte, North Carolina-based lender is especially vulnerable to rate movements because of the composition of its balance sheet.
Net income applicable to common shareholders fell to $4.44 billion, or 51 cents per share, in the quarter ended September 30, from $5.27 billion, or 56 cents per share, a year earlier.
Analysts had expected a profit of 49 cents per share, according to IBES data from Refinitiv.
Bank of America said its revenue fell 11% to $20.34 billion.
