Sunday 18 March 2018

Profit declines by 21pc at US banking giant

Bank of America: second-quarter profit down 21pc
Bank of America: second-quarter profit down 21pc

Laura Keller and Jack Sidders

Bank of America, the second-biggest US bank by assets, said second-quarter profit fell 21pc as the firm took an accounting charge and posted a decline in wealth-management revenue.

Net income dropped to $4.23bn, or 36 cents a share, from $5.13bn, or 43 cents, a year earlier, the Charlotte, North Carolina-based lender said yesterday. The average estimate of analysts surveyed by Bloomberg was for earnings per-share of 33 cents. Revenue fell 7.1pc to $20.4bn. Global wealth-management revenue fell 2.4pc to $4.5bn. The bank reaped $2.62bn from bond trading, a 22pc rise, and $1.09bn from equities, a 7.6pc drop.

Meanwhile, Wells Fargo will pay about £300m to acquire a new London headquarters enabling the US bank to increase its presence in the UK capital, according to two sources.

The building, known as 33 Central, is due to be completed in the third quarter of 2017.

The deal, just three weeks after Britain's vote to leave the EU, signals London real estate demand may be resilient even as some banks plan to move staff away. (Bloomberg)

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business