Bank of America Corp (NYSE:BAC) is likely to report its third-quarter results today, and as usual the bank will report better result as its different business units including fewer mortgages, wealth management and better loan quality are expected to display it report similar to previous result.
It is expected that the bank Bond trading has affected the shutdown in the country, while the quarter also offer prospect for stock gains. The bank earnings should be positive as it releases additional amount by selling its venture in China Construction Bank and money reserve for problem loans.
In this earning mortgages will be a big factor for impacting the earnings from either side, as in recently quarter release by JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) have report sharp decrease in mortgages. While the earning of Citigroup Inc (NYSE:C) mortgages were flat which the bank officials cited that “rate locks” were decrease 55%, an indications that mortgage originations would decrease also.
Bank of America Corp (NYSE:BAC) mostly deal in retail mortgages, that indicates that it provide mortgage loans directly to clients. And do not deal in wholesale or correspondent lending, a type of loan in which the bank purchase mortgages made by other lenders.
According to analysts at FactSet predict that the bank to declare earnings of 19% on each share, that will be increase from same period a year ago. The analyst firm expects revenue will be increase to $22 billion, up from $20.4 billion a year ago.
The past quarter result of the bank suggests that it has sacrificed many a profit to clear Lawsuits Out of its Way. Last year the bank settled a lawsuit with shareholder over the acquisition of Merrill Lynch. After the bank settles the deal with investors the bank still claimed that it has not deceived its investors in the acquisition but it has settled to move on. Bank of America Corp (NYSE:BAC) shares dropped -0.77% to $14.24 in last trading session.