Hello Everyone Today I am Discuss 2020 As Buffett Looks To Increase His Stake, Bank of America Beats Earnings Expectations, The Bank Of America Beats Here Earning As Buffett Looks To Increase His Stake. Another major U.S. bank beat earnings expectations on Tuesday, showing that despite ongoing tariff pressures, rate of interest cuts and slowing trading revenues, Wall Street had a solid quarter.
- Bank of America reported profit and revenue that came in above analyst estimates—with a net of $0.56 per share compared to $0.51 expected—thanks to strong consumer and advisory businesses that helped counter declining trading revenues.
- Shares of Bank of America rose over 2% in early trading; the stock has now risen almost 17% thus far this year.
- The bank is that the second-biggest lender within the U.S., making it especially sensitive to rate of interest cuts—but despite the Federal Reserve’s recent slashing of rates, Bank of America grew loans by 7%.
- Three out of 4 of the bank’s main divisions saw revenue gains: an 8% increase in its global banking business, the third increase in consumer banking revenue and a 2% increase in wealth management revenue.
- While revenue fell 2% within the bank’s trading division, the total company revenue was largely unchanged from a year earlier at $23 billion, beating analysts’ $22.8 billion estimates.
Tangent: Bank of America is one of billionaire investor Warren Buffett’s favorite stocks. Through his company, Berkshire Hathaway, Buffett recently asked the Fed for permission to boost his stake beyond 10%, consistent with a Bloomberg report.
Crucial quote: “In a moderately growing economy, we focused on driving those things that are controllable,” CEO Brian Moynihan said during a handout.