The second quarter proved to be a bumpy time for some of the largest Wall Street firms.
Bank of America’s profits dropped 52% to $3.53 billion, or $0.37 per share, from $7.35 billion, or $0.74 per share. It set aside some $5.12 billion for loan losses in Q2’20.
That news, reported Thursday, came two days after rival Wells Fargo reported a loss of $2.4 billion, or $0.66 per share, in Q2’20 and a loan-loss provision of $9.57 billion.
Meanwhile, Morgan Stanley’s second-quarter profits soared 45% to $3.20 billion, or $1.96 per share, from $2.20 billion, or $1.23 per share, a year ago. The bank, which doesn’t have large consumer banking operations like BofA and Wells, set aside $246 million for credit losses in Q2’20.
Wealth Unit Performance
The wealth unit of Morgan Stanley had revenues of about $4.7 billion in Q2, up from $4.4 billion in the year-ago period. Its net income, though, fell 10% year over year to $853 million.
BofA’s wealth group had revenues of $4.4 billion in Q2 ($3.6 billion of which came from Merrill), down from $4.9 billion a year ago. Its profits fell by 62% from a year ago to $726 million in the latest quarter.