Bank of America and Morgan Stanley reported for the third quarter – Kommersant
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Reports for the third quarter were presented by the last two American banks from the “big six” – Bank of America (BofA) and Morgan Stanley. Yesterday, October 17, quarterly reporting published Bank of America. Its revenue grew by 3%, amounting to $25.2 billion, net profit – by 10%, to $7.8 billion. These results were slightly better than experts’ expectations; yesterday, October 17, BofA shares rose in price by 0.3%.
Like most other large U.S. banks, BofA benefited from the Fed’s rate hike because the amount banks receive in interest substantially exceeds what banks pay out to deposit holders. BofA’s net interest income—the amount it receives from interest on loans minus the amount paid as interest on deposits—rose 4% in the quarter to $14.4 billion at the end of last week. reported three large American banks – JPMorgan Chase, Wells Fargo and Citigroup. All of them significantly improved their financial performance, primarily due to growth in net interest income.
Today, October 18, for the quarter reported Morgan Stanley. The bank’s revenue increased by 2.3%, to $13.3 billion. Net profit fell by 9%, amounting to $2.4 billion. Thus, Morgan Stanley became the second bank from the Big Six (along with Goldman Sachs) to close the quarter with a fairly significant decrease in profits. Goldman Sachs net income fell by 33%. In the case of Morgan Stanley, the decline in profits is primarily due to a decrease in revenue from its investment banking division: by 27%, to $938 million. This, in turn, is due to the fact that the market situation remains quite unfavorable and M&A activity is at a low level. Morgan Stanley shares fell 6%.
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