Why Bank of America Stock Is Falling Today
Bank of America (NYSE: BAC) delivered second-quarter earnings today that came in ahead of expectations, but investors were more focused on faltering loan growth. As a result, the stock traded down as much as 5% on Wednesday.
Before markets opened today, Bank of America reported second-quarter earnings of $1.03 per share, besting the $0.77 consensus, on revenue of $21.5 billion that was slightly under the $21.83 billion expectation.
The issue for Bank of America and other large financial institutions is that consumers and small businesses aren't taking on new debt the way they used to. Government programs designed to keep banks and businesses afloat during the pandemic largely succeeded in avoiding widespread defaults, but they have left borrowers with little need to apply for new loans or tap credit lines. And cash payments have left consumers awash with money, leading consumer loans and leases to fall by 12% from a year prior.
Source Fool.com
