Is recession back? Bank of America's profits nosedive by over 30%, trigger fears of downturn

The Bank of America's quarterly profit dipped to $6.2 billion, or 73 cents per share, as reported by the bank on Monday, in comparison with a profit of $9.2 billion, or $1.03 a share, at the same time a year ago.

An oversight of the performance of the US's second-largest bank this quarter was its revenue, which rose from $21.5 billion to $22.7 billion year over year, majorly because of high interest rates and a surge in the level of lending.

Bank of America's profits decreased dramatically over the previous year after the bank disclosed billions of dollars from its loan loss reserves, which it had set aside during the epidemic to cover some potentially risky loans.


For similar reasons, JPMorgan Chase, Wells Fargo and Citigroup have all been facing double-digit profit declines in the past week.

Wall Street is vastly focused on the vision for the next half of the year because of the expected recession that could be set off by inflation and the Federal Reserve's bellicose operations to tackle rising prices. Last week, JP Morgan's Chairman and CEO, Jamie Dimon, said high prices, interest rate plunges and the war in Ukraine were all supposed to harm the world economy anytime down the road.

Brian Moynihan, Bank of America's top official, appeared a bit bullish in his opinions about the economy on Monday in the remarks he had prepared, saying that the consumers of the U.S. remain strong, no matter the economic uncertainty.

Bank of America Corp., based in Charlotte, N.C., shares declined 2% before the opening bell.