Commodities

BAC Earnings Q3 2019


Brian Moynihan, CEO of Bank of America, at the Goldman Sachs U.S. Financial Services Conference on December 4, 2018.Michael Newberg | CNBCBank of America is scheduled to report third-quarter earnings before the opening bell Wednesday.Here’s what Wall Street expects: Earnings: 51 cents a share, down 23% from a year earlier, according to Refinitiv. Revenue: $22.79 billion, down 0.6% from a year earlier.Net Interest Margin: 2.39%, according to FactSet Trading Revenue: Fixed income $2.04 billion, Equities $1.09 billionWill cost-cutting offset the drag from lower interest rates at Bank of America?That’s the question faced by CEO Brian Moynihan. Bank of America, the second biggest U.S. lender after J.P. Morgan Chase, is the “most asset sensitive” among the big banks, meaning that changes in interest rates impact it the most, according to Morgan Stanley analyst Betsy Graseck.Bank of America management is likely to lower guidance for the net interest income it earns after the Federal Reserve cut rates twice in the quarter. The firm has already done that twice this year, in April and July, and each time the bank’s shares traded lower off the news.Under Moynihan, the firm has steadily trimmed expenses while holding the line on or increasing revenue. (The bank has said that its expenses would total $53 billion for 2019.) That has made it a favorite holding of Warren Buffett’s Berkshire Hathaway, which has asked the Fed for permission to take his stake beyond the 10% level, according to Bloomberg.The bank’s shares have climbed 21% this year, exceeding the 18% return of the KBW Bank Index.

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