Business

Bank of America and Wells Fargo beat earnings forecasts as the economic recovery continues.


Four of the country’s biggest banks are reporting their financial results on Thursday, a day after JPMorgan Chase got earnings season off to a solid start.

Bank of America beat analysts expectations, reporting a profit of $7.7 billion, or 85 cents per share, for the three-month period that ended in September. The bank’s deal makers pulled in record advisory fees of $654 million, echoing their counterparts at JPMorgan, who also cashed in on a hot market for mergers and acquisitions.

“We reported strong results as the economy continued to improve,” Brian Moynihan, Bank of America’s chief executive, said in a statement.

At Wells Fargo, profit was $5.1 billion, or $1.17 per share, also beating analyst estimates. Wells Fargo’s chief executive, Charles W. Scharf, said the bank was focused on fixing its problems after it was slapped with a $250 million fine over mortgage practices and a stinging rebuke from a banking regulator last month. It was the latest in a series of penalties the bank has faced for its conduct, including a fake account scandal that spanned more than a decade.

Those actions were “a reminder that the significant deficiencies that existed when I arrived must remain our top priority,” Mr. Scharf said in a statement.

Included in both banks’ profits were funds released from stockpiles they had built early in the pandemic to guard against a surge in loan defaults that never materialized. Bank of America released $1.1 billion, and Wells Fargo released $1.7 billion.

Citigroup and Morgan Stanley were also reporting earnings on Thursday.

On Wednesday, JPMorgan, the country’s biggest bank, beat analysts expectations with earnings of $11.7 billion, or $3.74 per share, fueled by a record performance by its deal makers who advise on mergers and acquisitions.



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