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Bank of America profit beats on boost from reserve launch, lending

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Oct 14 (Reuters) – Bank of America Corp (BAC.N) beat estimates for third-quarter profit on Thursday, because it launched reserves of $1.1 billion and recorded robust development in its lending and equity-trading divisions.

Net revenue relevant to widespread shareholders rose to $7.26 billion, or 85 cents per share, for the quarter ended Sept. 30 from $4.44 billion, or 51 cents per share, a 12 months earlier.

Analysts on common had anticipated a profit of 71 cents per share, in accordance with the IBES estimate from Refinitiv.

Revenue from the financial institution’s equities division rose 33%, pushed by development in consumer financing actions and robust buying and selling efficiency.

Net curiosity revenue (NII), a key measure of how a lot banks make from lending, rose practically 10% to $11.09 billion.

“Deposit growth was strong and loan balances increased for the second consecutive quarter, leading to an improvement in net interest income even as interest rates remained low,” Chief Executive Officer Brian Moynihan mentioned in a press release.

Bank of America had put aside tens of billions of {dollars} final 12 months to cowl doable mortgage defaults, which it has steadily been releasing because the financial outlook improved.

Because of the composition of its stability sheet, BofA is most delicate amongst giant U.S. banks to modifications in rates of interest.

Bank of America’s income jumped 12% to $22.8 billion.

Reporting by Niket Nishant in Bengaluru and Elizabeth Dilts Marshall in New York; Editing by Anil D’Silva

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