WASHINGTON, DC – In a promising turn of events, Bank of America has outperformed expectations in its third-quarter earnings, showcasing robust financial performance. Here’s a summary of the company’s report:
Earnings per share stood at an impressive 90 cents, surpassing the anticipated estimate of 82 cents according to LSEG (formerly known as Refinitiv).
The bank reported a total revenue of $25.32 billion, which exceeded the projected figure of $25.14 billion.
Profits surged by 10%, reaching $7.8 billion, equivalent to 90 cents per share, up from $7.1 billion (81 cents per share) in the previous year. This stellar performance was particularly noteworthy given the challenges faced by the Charlotte, North Carolina-based bank. Moreover, revenue experienced a healthy 2.9% increase to reach $25.32 billion, surpassing the LSEG estimate.
One of the standout achievements was Bank of America’s interest income, which rose by an impressive 4% to $14.4 billion, surpassing analysts’ expectations by roughly $300 million. This growth can be attributed to higher interest rates and increased loan activity. The bank also performed exceptionally well concerning credit loss provisions, which came in at $1.2 billion, below the expected $1.3 billion.
As a result of this positive financial performance, Bank of America witnessed a 2.4% rise in its shares during midday trading.
Analyst Mike Mayo of Wells Fargo noted that these results indicate that Bank of America adeptly navigated potential pitfalls related to loan losses and rising interest rates. He described the quarter as “strong,” even though it fell slightly short of the results achieved by JPMorgan and Citigroup.
CEO Brian Moynihan expressed his satisfaction with the bank’s performance, underscoring that it continued to grow, despite signs of an economic slowdown. He stated, “We expanded our client base and increased accounts across all our business lines. We achieved this in a challenging economic environment, where U.S. consumer spending remained ahead of last year, although it is gradually slowing down.” Bank of America’s resilience and solid financial performance in the face of economic headwinds are indeed commendable.