Bank of America tops profit estimates on better-than-expected interest income

Bank of America topped estimates for third-quarter profit on Tuesday on stronger-than-expected interest income.

Here’s what the company reported:

  • Earnings per share: 90 cents vs. expected 82 cent estimate from LSEG, formerly known as Refinitiv
  • Revenue: $25.32 billion, vs. expected $25.14 billion

Profit rose 10% to $7.8 billion, or 90 cents per share, from $7.1 billion, or 81 cents a share, a year earlier, the Charlotte, North Carolina-based bank said in a release. Revenue climbed 2.9% to $25.32 billion, edging out the LSEG estimate.

Bank of America said interest income rose 4% to $14.4 billion, roughly $300 million more than analysts had anticipated, fueled by higher rates and loan growth. The bank’s provision for credit losses also came in better than expected, at $1.2 billion, under the $1.3 billion estimate.

Shares of Bank of America closed more than 2% higher Tuesday.

The results show Bank of America avoided major pitfalls related to loan losses and higher rates, analyst Mike Mayo of Wells Fargo wrote in a note. He called it an “okay quarter” that fell short of JPMorgan and Citigroup’s results.

Brian Moynihan, CEO of Bank of America

Heidi Gutman | CNBC

CEO Brian Moynihan said the second biggest U.S. bank by assets continued to grow, despite signs of an economic slowdown.

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

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