Bank of America and Wells Fargo posted less profits in third quarter

Bank of America has seen its profits plummet in the past period. The US bank had to put extra money aside for loans that might not be repaid. The low interest rates and additional costs to protect the health of staff and customers during the corona outbreak also influenced the results.

Bank of America’s profits came in the third quarter from $ 4.9 billion, a decrease of just under 16 percent. For bad loans, the bank set aside $ 1.4 billion. In the last few years, the bank has made more loans.

The revenue was USD 20.3 billion, which was 11% less than a year earlier. The biggest blow came from low interest rates. As a result, interest income fell by 17%.

Also Wells Fargo, the largest mortgage lender in the United States, saw the profits fall. The costs increased unexpectedly at that bank, partly due to a reorganisation and because the company set aside money to resolve conflicts with customers.

Wells Fargo had profits of 18.9 billion dollars, a 14 percent drop. Under the line there remained 2 billion dollars, partly because of the provision of 1.7 billion dollars. Last year, Wells Fargo made a profit of $ 4.6 billion in the same period.