Bank of America (NYSE:BAC) surged back into the black in the third quarter despite a slight dip in revenue.
Net profit was US$4.51bn, compared to a loss of US$232mln in the same period of 2014, when the bank fell into the red after a legal settlement with the Justice Department.
Earnings per share of 37 cents were four cents above market expectations.
Revenue eased to US$20.68bn from US$21.21bn a year earlier, while adjusted revenue was US$20.91bn, a tad ahead of expectations of US$20.77bn.
Costs tumbled to US$13.81bn from $230.14bn in the third quarter of last year, reflecting lower spending on legal fees.
Money set aside for bad debts climbed US$170mln from a year earlier to US$806mln.
"We saw solid results this quarter by continuing to execute our long-term strategy," said chief executive officer Brian Moynihan.
“The key drivers of our business -- deposit taking and lending to both our consumer and corporate clients -- moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions. Our balanced approach to serving customers and clients is on track as the economy continues to move forward," he added.