BOA: 2.48% drop in Q3 pre-tax profits, $0.91 dividend.

According to Bank of America’s Q3 2023 results, pre-tax profits fell to $8.095 billion, a 2.48% YoY decrease.

After deducting $23.072 billion from nine months of pre-tax income last year, the profit for this period came to $25.218 billion.

Findings: A notable rise in the provision for credit losses was the main cause of Bank of America’s Q3 pre-tax profit’s minor decline.

However, the bank’s net income increased by 10.17% to $7.802 billion, mostly due to a significant 76% decrease in income tax expenses. The nine-month net income increased to $23.371 billion as a result.

Apart from the impact of lower income tax charges on the bank’s earnings, total revenue (excluding of interest expenses) increased by 3% to $25 billion. The surge in net interest income was the main driver of this expansion.