Bank of America Corp. exceeded earnings expectations in the third quarter, bolstered by strong performances in equity and fixed-income trading, as well as a better-than-anticipated showing in investment banking. Revenue from equity, fixed income, currencies, and commodities (FICC) trading surged 12% to $4.93 billion, and investment banking revenue climbed 15%, reflecting the long-awaited resurgence in dealmaking.
Net interest income (NII), a key metric for the bank, dipped 2.9% to nearly $14 billion, outperforming analysts' expectations of a 3.4% decline. Despite the drop, Bank of America remains optimistic, with the company forecasting an increase in NII to $14.3 billion or more in the fourth quarter.
The bank's loan balances rose to $1.08 trillion, slightly ahead of estimates, signaling resilience amid high interest rates. Non-interest expenses increased by 4%, reflecting investments in personnel and technology.
Overall, net income for the quarter was $6.9 billion, or 81 cents per share, down 12% from last year but surpassing analyst projections of a 16% decline. Bank of America’s stock rose 1.7% following the earnings release and is up 26% for the year.
Bank of America’s results come on the heels of strong earnings from JPMorgan Chase and Wells Fargo, both of which also benefited from improved investment banking and trading revenues.
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