Bank of America Corp (NYSE:BAC) will release an earnings report for the third quarter of 2013 on Tuesday October 16 before the bell rings on Wall Street. The firm is expected to show more than 25% growth from last year’s earnings, but still record a relatively poor quarter.
In the run up to the release of these results analysts studying Bank of America Corp (NYSE:BAC) were looking for earnings of 19 cents per share from the company on revenue totaling $22 billion. In the same three months of 2012 Bank of America earned 15 cents per share on revenue totaling $20.7 billion.
Bank of America Fed troubles
Like the other big banks, Bank of America Corp (NYSE:BAC) is suffering on the back of interest rate increases during the last three months. Taper talk, or the rumors that the Federal Reserves would tone down QE3 in September, caused interest rates to rise and reduced the amount of new loans available to Bank of America and other large banks in the United States.
The mortgage troubles have depressed the results of all of the major banks that have reported third quarter numbers so far this earnings season. Bank of America Corp (NYSE:BAC) is the last of the big four to release its numbers this time around, so that pattern is not expected to change when the bank shows earnings on Wednesday mornings.
Bank of America performance
Bank of America Corp (NYSE:BAC) earnings are expected to come in at 93 cents per share, two cents below last year’s earnings numbers. 2013 has not been a great year for the bank, but it is expected to return to growth in 2014. The market seems confident in future growth at the company. Shares in Bank of America have risen by more than 22% since January 1.
Shares in the bank are still nowhere near the levels they traded at before the financial crisis began to hit in 2008. Share prices have been growing since the start of 2012, and investors are hoping that the firm will manage to grow business back to pre-crisis levels at some point in the coming years.