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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

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"

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%.

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