Bank of America Earnings Lift With Higher Long Term Interest Rates

Bank of America report third quarter earnings before the bell Thursday. $BAC has been seeing surging investment banking and trading results coupled with the release of loan-loss reserves.  $BAC joined CitigroupJPMorgan Chase, Wells FargoGoldman Sachs reporting this week.

Bank of America report third quarter earnings before the bell Thursday. $BAC has been seeing surging investment banking and trading results coupled with the release of loan-loss reserves.  $BAC joined CitigroupJPMorgan Chase, Wells FargoGoldman Sachs reporting this week.

Bank of America Mortgage

Bank of America Corporation NYSE: BAC Report Earnings Before Open Thursday

$0.71 EPS Forecast and $21.7 Billion Forecast in Revenue

Bank of America Consensus Expectations

Earnings Preview

  • Q3 2021 earnings release: before the opening bell; conference call: 9 a.m.

The bank is due to report third quarter profit of a projected EPS of 71 cents on projected revenue of $21.7 billion. Bank of America is the second-largest US bank.

Rising interest rates has a positive effect on Bank of America earnings. US 10-year Treasury yield has recently been rising as investors are becoming more optimistic about the US economy. The benefit of a +100 basis points parallel shift up in interest rates is approximately $10.5 billion for BAC. 

 Big Banks Kick Off Third Quarter 2021 Earnings Season

The bank rally has been fueled by expectations for the economy reopening and infrastructure spending.  The new surge in home prices has also buoyed optimism for the mortgage business and banks profits thereto.  

Bank of America Corporation NYSE: BAC

Market Reaction: 

 Highlights

 

The second-biggest U.S. lender after J.P. Morgan Chase is among the most sensitive of large banks when it comes to changes in interest rates, according to analysts,  It is also the most exposed to the US economy.

 Source: BAC

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