Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Bank of America's casino banking arm comes up trumps

Earnings topped expectations, thanks to a strong performance from the trading arm, sometimes disdainfully known as the "casino banking division"
Bond traders
The bank’s global market division saw net income shoot up to US$1.07bn from US$800mln

Bank of America Corp (NYSE:BAC) edged higher in early deals in a falling market after third quarter earnings topped expectations.

Earnings per share of 41 cents came in comfortably ahead of the market forecast of 34 cents, while revenue of US$21.6bn was up 3% year-on-year and ahead of forecasts of US$21.0bn.

Although the low interest rate environment meant the bank struggled to generate much growth in the consumer banking arm, where revenue rose to US$1.81bn from US$1.76bn, net income for the group as a whole rose to US$4.45bn from US$4.18bn the year before, thanks to a strong performance from its investment banking arm and lower costs this time round.

The bank’s global market division saw net income shoot up to US$1.07bn from US$800mln in the same quarter of 2015.

The shares were up 0.2% at US$16.03 in a market that was down 0.1%.

View full BAC profile View Profile

Bank of America Timeline

Related Articles

Care worker
August 10 2018
The stock consistently trades above its net asset value per share, which could have something to do with the dividend yield of more than 6%
International currencies in bundles
September 04 2018
A number of key acquisitions and new products have attracted a raft of new customers towards the firm's platform as it seeks to challenge established forex providers
Russia picture
June 04 2018
The bulk of overall exposure is in credit and government bonds followed closely by equities

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use