 posted a 34 per cent profit increase for the third quarter on Monday, as the bank continued to benefit from higher interest rates and loan grow){kind=link}
Bank of America (NYSE:BAC) posted a 34 per cent profit increase for the third quarter on Monday, as the bank continued to benefit from higher interest rates and loan growth.
Q3 profit at bank came in at $6.92 billion, a 30 percent increase compared with $5.34 billion a year ago, beating market expectations.
Total revenue climbed 3.7 percent to $23.3 billion, also higher than estimates.
Moreover, provisions for credit losses strengthened to $834 million. Conversely, analysts had anticipated estimated a $969 million boost.
Per-share earnings also proved ahead of expectations at 62 cents, compared to a forecast 59 cents per share.
The bank in particular benefited from the federal tax changes approved in December, with its effective tax rate falling approximately 9 percentage points.
Chief Executive Officer Brian Moynihan said:
“Our responsible growth model continues to deliver consistent results. Strong client activity, coupled with a growing global economy and solid US consumer activity, led to record quarterly earnings.”
Mr Moynihan also attributed the strong performance to a growth in its business segments by $45 billion, with increased despots at $41 billion.
He also said the bank continues to focus upon developing its mobile banking app, alongside expanding its financial centres.
The bank is also set to expand its presence, with locations opening in Cincinnati, Cleveland, Columbus, Denver, Indianapolis, Lexington, Minneapolis-St. Paul, Pittsburgh and Salt Lake City.
Bank of America’s record quarter follows JP Morgan (NYSE:JPM) and Citigroup earning reporting on Friday, with both beating analyst forecasts.
Shares in the bank are currently down 2.77 percent as of 13.24 (GMT), after a 1 percent bounce prior to market open.