Bank of America Surges as JPMorgan Stumbles, Jamie Dimon Dings Analysts
(Bloomberg) -- Bank of America Corp. shares gained as much as 8.2 percent on Wednesday, the most intraday since June of 2012, and its stock has rallied about 9 percent this week, after bank earnings kicked off with Citigroup Inc.’s report on Monday. That’s outpacing JPMorgan Chase & Co., which rose as much as 1.7 percent on Wednesday and is up 3 percent for the week.
BofA’s profit and revenue beat, and its climbing net interest margin, or NIM, also topped estimates and was in particular applauded by Wall Street. JPMorgan’s adjusted earnings per share and FICC sales and trading revenue trailed estimates. That was the bank’s first adjusted earnings per share miss since the second quarter of 2016.
Asked about the earnings miss during a lunchtime interview on Wednesday, held by the Economic Club of New York, JPMorgan CEO Jamie Dimon said, “I really don’t care” about estimates, which he characterized as what “20 people think are estimates.” He added that analysts don’t update them, and go on vacations in late December.
“You know what’s important to me?” Dimon said, and answered with a list that included market share, number of clients, products and branches. What wasn’t important? “NIM,” he said.
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