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Bank Of America Reports Earnings Tomorrow - Here's What You Should Know

Linette Lopez   

Bank Of America Reports Earnings Tomorrow - Here's What You Should Know
Finance1 min read

bank of america

REUTERS/ Brendan McDermid

Wall Street bank earnings continue tomorrow with Bank of America reporting at 7:00 a.m., a conference call will follow the results at 8:30 a.m.

Analysts expect earnings per share to come in at $0.19 with revenue of $22 billion, according to data compiled by Bloomberg. That's down from Q3 2012, when EPS $0.28 with and revenue at $20.7 billion.

That all said, if you think we're seeing a depressing trend here, you'd be right. Both JP Morgan and Citigroup missed expectations and reported revenue down from Q3 2012 - and Q3 is already a notoriously slow quarter for banks.

In JP Morgan's case, the carnage was mostly due to legal issues. But both JPM and Citi were hit with issues plaguing the entire Street this quarter - slowing mortgage businesses and lower fixed income trading revenues.

Bank of America, for its part, has spent the last few years transitioning its business away from trading to sleepier businesses like wealth management.

But on the mortgage front, Bank of America still could stand to see some pain. Bank of America deals only in retail mortgages, which means that if customers aren't taking out new mortgages or refinancing due to rising interest rates, the bank's business is going to suffer. Watch for that.

And remember, Bank of America is still dealing with the legal mess it inherited from Countrywide. Even today Countrywide execs are still in Court attempting to explain themselves, so if Bank of America announces any legal surprises.

Well, don't be surprised.

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