Bank of America (NYSE:BAC) shares dipped in pre-market trading after the lender reported second-quarter revenue that was below analysts’ expectations.
The second largest U.S. bank by assets reported revenue of $21.6 billion U.S., slightly below the $21.8 billion U.S. that analysts had expected.
Earnings per share came in at $1.03 U.S., including a one-time $2-billion U.S. tax benefit. That was better than the $0.77 U.S. estimate of analysts, according to data from Refinitiv.
Like other lenders, Bank of America set aside billions of dollars for credit losses last year, when the industry anticipated a wave of defaults tied to the pandemic. Instead, government stimulus programs appear to have prevented most of the losses and banks have begun to release reserves this year.
On Tuesday, JPMorgan Chase (NYSE:JPM) and Goldman Sachs (NYSE:GM) each posted results that beat expectations, helped by strong revenue from Wall Street deal making.
Year-to-date, shares of Bank of America have risen 33% to $39.86, exceeding the 16% gain of the S&P 500 stock index.
