Four of the country’s largest banks will release their financial results on Thursday, a day after JPMorgan Chase got off to a good start to its earnings season.
Bank of America exceeded analyst expectations, reporting earnings of $7.7 billion, or 85 cents per share, for the three-month period ended September. The bank’s dealmakers raised a record $654 million in consultancy fees, following in the footsteps of their counterparts at JPMorgan, which was also cashing in on a 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’s earnings were $5.1 billion, or $1.17 per share, also better than analysts’ estimates. Wells Fargo’s chief executive, Charles W. Scharf, said the bank was focusing on solving its problems after being fined $250 million last month for mortgage fraud and a sharp reprimand from a banking regulator. It was the latest in a series of penalties the bank has faced for its conduct, including a fake account scandal that lasted more than a decade.
Those actions were “a reminder that the significant shortcomings that existed when I arrived must remain our top priority,” Mr Scharf said in a statement.
Both banks’ profits included funds released from inventories they had built up early in the pandemic to guard against a surge in defaults that never happened. Bank of America released $1.1 billion and Wells Fargo released $1.7 billion.
Citigroup and Morgan Stanley also released earnings figures on Thursday.
On Wednesday, JPMorgan, the nation’s largest bank, surpassed analyst expectations with earnings of $11.7 billion, or $3.74 a share, driven by a record performance from its dealmakers who advise on mergers and acquisitions.