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Business News/ Companies / Company Results/  Bank of America Q3 earnings: Net income jumps 10% at $7.8 billion
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Bank of America Q3 earnings: Net income jumps 10% at $7.8 billion

Revenue at BofA’s consumer banking unit surges 6% at $10.5 billion

Shares of Charlotte, North Carolina-based Bank of America, which were down 19% this year through Monday, added 1% in premarket trading. BloombergPremium
Shares of Charlotte, North Carolina-based Bank of America, which were down 19% this year through Monday, added 1% in premarket trading. Bloomberg

The second largest US lender Bank of America Corp. on Tuesday reported robust earnings for third quarter on better-than-expected performance of its investment banking and trading divisions.

The bank reported a profit of 90 cents per share in the quarter. Net income jumped 10% at $7.8 billion.

Its revenue at consumer banking unit surged 6% at $10.5 billion. 

BofA said spending on debit and credit cards was also resilient, rising 3% in the quarter.

“We added clients and accounts across all lines of business," CEO Brian Moynihan said in a statement. “We did this in a healthy but slowing economy that saw U.S. consumer spending still ahead of last year but continuing to slow."

However, Moynihan warned that Americans continue to slow their spending after burning through pandemic savings, and now face higher costs due to inflation.

Shares of Charlotte, North Carolina-based Bank of America, which were down 19% this year through Monday, added 1% in premarket trading.

The bank recorded total investment banking fees at $1.2 billion - 2% up, while sales and trading revenue rose 8% at $4.4 billion in the third quarter.

BofA reported net interest income (NII) 4% higher in the third quarter at $14.4 billion.

The bank also reported unrealized losses of $131.6 billion on securities held until maturity in the third quarter, growing from nearly $106 billion in the second quarter.

Its revenue, net of interest expense, rose 3% in the quarter at $25.2 billion. 

The bank’s loan balances rose at $1.049 trillion at the end of the third quarter, up 1.6% from a year earlier.

Also on Tuesday, US investment bank Goldman Sachs reported a fall in third quarter profit, noting net losses in equity investments compared with a year ago. 

The bank reported profit at $1.9 billion, down 36% from the same period last year.

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Published: 17 Oct 2023, 06:13 PM IST
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