Bank of America Corp (NYSE:BAC) reported earnings and revenue ahead of forecasts, plus a double-digit rise in net income, after what it called a “strong quarter.”
The San Francisco-based bank reported net income of $7.80 billion in the third quarter of the year, up 10% from $7.08 billion the year prior.
Its diluted earnings per share climbed 11% to $0.90 from $0.81 while revenue in the quarter climbed 2.7% to $25.17 billion from $24.50 billion the year before.
Analysts had forecast revenue of $25.13 billion and EPS of $0.81.
Chair and CEO Brian Moynihan said the results were achieved in “a healthy but slowing economy that saw US consumer spending still ahead of last year but continuing to slow.”
Net interest income rose 4% to $14.4 billion driven primarily by benefits from higher interest rates and loan growth.
Non-interest income of $10.8 billion was up a modest $51 million, as higher sales and trading revenue and asset management fees more than offset lower other income.
Provision for credit losses of $1.2 billion increased by $336 million.
BofA's common equity tier one ratio was 11.9% as at September 30, improved from 11.0% at the same time a year prior.
The bank's return on average common shareholders' equity ratio was 11.2%, compared to 10.8% the year prior while the return on average tangible common shareholders' equity ratio was 15.5%, up from 15.2%.
Shares are up 1% in pre-market trading at $27.25.