NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) will unveil the latest details on its incredible shrinking bank act Wednesday morning as investors continue to look for cost cuts to drive earnings.
Analysts are looking for third-quarter earnings of 21 cents per share on total revenue of $22 billion, according to estimates compiled by Bloomberg . The bank earned 32 cents per share on revenues of $22.7 billion in the second quarter and 23 cents per share on revenues of $20.4 billion in the third quarter of 2012. Revenues in the third quarter of 2011 were $28.5 billion, and in the third quarter of 2010 they were $26.8 billion.
Bank of America was the hardest hit of the big banks by problem mortgage loans tied to the subprime housing boom, so it should have an easier time reducing expenses than peers, according to Paul Miller, analyst at FBR Capital Markets. Miller says JPMorgan Chase (JPM - Get Report), which reported earnings Friday, did a poor job reducing expenses. Indeed, JPMorgan Chairman and CEO Jamie Dimon sounded pessimistic long-term on his bank's ability to cut costs given intense regulatory scrutiny that shows no sign of letting up.
"The struggle you have with any of these banks is, can you cut costs without cutting revenue? I will give you this.
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