By contrast, the trading business was one of JPMorgan's strongest areas, which helped JPMorgan offset weaknesses in other ares of its business such as consumer lending. BofA didn't show this advantage because areas such as mortgage banking and credit cards showed meaningful sequential declines, albeit in line with Street expectations.
Along similar lines, expenses were also up 4% sequentially. Although Bank of America missed the consensus estimate, the higher expense was a noticeable trend across the sector. Wells Fargo also saw a 4% sequential increase, while Citigroup's expenses increase by 1%.
However, it's worth noting here that of the "big four" banks, BofA was the only one to post a sequential decline in deposits.
That said, I don't believe there's cause for concern here, given BofA's immense size and the fact that it still leads both Wells Fargo and JPMorgan in overall deposits. But this is something that's certainly worth monitoring for the next quarter.As with Citigroup, there are still plenty of legacy issues impacting upon Bank of America's performance. Should investors worry BofA is losing share to its rivals?
To that end, management has been saying all of the right things, assuring investors that recent restructuring efforts will place BofA on a growth path for the next several years. These include a previously reported plan to reduce 10% of its workforce. What this means is that patient shareholders will be rewarded much sooner rather than later because these improvements can help spur stock buybacks as well as the company's ability to issue dividends.