Bank of America’s stock falls after profit beats, but revenue falls shy

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Shares of Bank of America Corp. fell 2.0% in premarket trading Wednesday, after the bank reported a third-quarter profit that topped expectations but revenue that fell shy. Net income fell to $4.9 billion, or 51 cents a share, from $5.8 billion, or 56 cents a share, in the year-ago period, above the FactSet consensus of 49 cents a share. Total revenue declined 10.8% to $20.34 billion, missing the FactSet consensus of $20.8 billion, as the global markets, global banking and global wealth and investment management segments missed expectations while consumer banking topped forecasts. Net interest income fell 16.9% to $10.13 billion, just shy of the FactSet consensus of $10.24 billion. Provision for credit losses increased to $1.39 billion from $779 million, but that was below expectations of $1.88 billion. The stock has dropped 29.2% year to date through Tuesday, while the SPDR Financial Select Sector ETF has declined 18.7% and the S&P 500 has gained 8.7%.
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