The country’s four largest banks reported their financial results on Thursday, a day after JPMorgan Chase kicked off its earnings season positively.
Bank of America beat analysts’ expectations by reporting earnings of $ 7.7 billion, or 85 cents per share, for the three-month period ending in September. The bank’s dealmakers received record $ 654 million in consulting fees, echoing their colleagues at JPMorgan, who also profited from the hot M&A market.
“We reported strong results as the economy continued to improve,” Bank of America CEO Brian Moynihan said in a statement.
Wells Fargo earned $ 5.1 billion, or $ 1.17 per share, which also beat analysts’ estimates. Wells Fargo chief executive Charles W. Scharf said the bank is focusing on solving its problems after it was fined $ 250 million for mortgage practice last month and was sharply rebuked by the banking regulator. It was the latest in a series of fines the bank faced for its conduct, including a fake account scandal that lasted more than a decade.
These actions were “a reminder that the significant deficiencies that existed when I arrived should remain our top priority,” Mr. Scharf said in a statement.
Included in the profits of both banks were funds freed from stocks they created at the start of the pandemic to guard against a spike in non-performing loans that never materialized. Bank of America issued $ 1.1 billion and Wells Fargo issued $ 1.7 billion.
Citigroup and Morgan Stanley also posted earnings on Thursday.
JPMorgan, the nation’s largest bank, surpassed analyst expectations on Wednesday with profit of $ 11.7 billion, or $ 3.74 a share, boosted by record numbers from its M&A advisers.