May 31 Bank of America Corp
second-quarter earnings will be hurt by a drop in trading
revenue, lower-than-expected interest rates and the sale or
shuttering of certain assets, according to comments from Chief
Executive Brian Moynihan on Wednesday.
Speaking at an industry conference, Moynihan said trading
revenues are on track to be some 10 percent to 12 percent lower
than the second quarter of 2016 because last year's quarter was
especially strong. He said first-half trading revenues will
still be up by roughly 3 percent to 4 percent versus a year ago.
Revenues will also be hurt by lower-than-anticipated
interest rates and the fact that the bank closed the sale of its
UK credit card business a month ahead of schedule, reducing net
interest income for the quarter. The two factors together should
lower net interest income by $100 million to $110 million,
Bank of America shares were down 2.4 percent in mid-morning
The bank will also take a $300 million charge as it sells or
shutters data centers, Moynihan said. Bank of America is moving
much of its data to the cloud. The switch will save the bank
money over time, Moynihan said.
(Reporting by Dan Freed in New York; Editing by Meredith