Bank of America CEO talks down second-quarter expectations
Reuters
Published May 31, 2017 11:09AM ET
Updated May 31, 2017 11:20AM ET
Bank of America CEO talks down second-quarter expectations
By Dan Freed
(Reuters) - Bank of America Corp (N:BAC) second-quarter earnings will be hurt by a drop in trading revenue, lower-than-expected interest rates and the sale or shuttering of certain assets, according to comments from Chief Executive Brian Moynihan on Wednesday.
Speaking at an industry conference, Moynihan said trading revenues are on track to be some 10 percent to 12 percent lower than the second quarter of 2016 because last year's quarter was especially strong. He said first-half trading revenues will still be up by roughly 3 percent to 4 percent versus a year ago.
Revenues will also be hurt by lower-than-anticipated interest rates and the fact that the bank closed the sale of its UK credit card business a month ahead of schedule, reducing net interest income for the quarter. The two factors together should lower net interest income by $100 million to $110 million, Moynihan said.
Bank of America shares were down 2.4 percent in mid-morning trading.
The bank will also take a $300 million charge as it sells or shutters data centers, Moynihan said. Bank of America is moving much of its data to the cloud. The switch will save the bank money over time, Moynihan said.
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