The nation’s largest bank by assets posted a profit of $9.74 billion, or $3.12 a share, down from a profit of $11.69 billion, or $3.74 a share, in the same period a year earlier. The results did beat Wall Street’s expectations of $2.90 a share, according to FactSet.
While the bank grew revenue and loans in the quarter, any additional profit it made compared to last quarter were erased by credit losses. The bank added $937 million to its loan-loss reserves, which is money banks set aside to cover potentially bad loans, in what the bank said reflects “updates to the Firm’s macroeconomic scenarios.” The bank also charged off roughly $700 million in loans, up sharply from a year earlier.
h/t Big Daddy D