(RTTNews) - Bank of America (BAC) reported second quarter earnings per share of $0.37 compared to $0.74, prior year. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $0.27, for the quarter. Analysts' estimates typically exclude special items. Pretax income declined 58% year-on-year to $3.8 billion. Net income of $3.5 billion included the impact of a $4.0 billion reserve build primarily associated with a weaker economic outlook related to COVID-19. Provision for credit losses increased to $5.1 billion, driven by $4.0 billion reserve build. Pretax, pre-provision income, was down 9% to $8.9 billion.
Second quarter revenue, net of interest expense, decreased 3% year-on-year to $22.3 billion. Analysts expected revenue of $22.01 billion for the quarter. Net interest income declined 11% to $10.8 billion, driven by lower interest rates, partially offset by loan and deposit growth. Noninterest income rose 5% to $11.5 billion, led by strong capital markets results.
CFO Paul Donofrio said: "We strengthened an already strong balance sheet by increasing capital and liquidity and growing deposits. While net charge-offs remained relatively low by historical standards, we added another $4 billion to credit reserves to reflect the current economic outlook. We ended the quarter with record deposits of $1.7 trillion, $242 billion in common equity, and $21 billion in credit reserves."
Shares of Bank of America were down nearly 2% in pre-market trade on Thursday.
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