Bank of America’s quarterly profits rise 58% with high interest income.

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Bank of America Corp.’s third-quarter profit increased 58%. This suggests that the bank’s lending business is beginning to improve from the pandemic downturn.

Revenues from the second largest bank in the United States increased from $ 4.88 billion in the previous year to $ 7.69 billion. Eighty-five cents per share exceeded what FactSet polled analysts expected, 71 cents.

Revenues totaled $ 22.77 billion, an increase of 12% from $ 20.34 billion in the previous year. This exceeded analysts’ expectations for $ 21.68 billion in revenue.

Much of the country’s economic activity flows through Bank of America and its peers, giving you a real-time view of how consumers and businesses are recovering from a pandemic.

Banks have benefited from a recovery in net interest income, including holding loans and bonds. Net interest income was $ 11.1 billion, up 10% year-over-year.

Despite the economic improvement, banks struggled to increase their loan books this year. JPMorgan Chase reported on Wednesday that loan books have remained essentially flat since the second quarter, but executives said they are seeing signs that consumers and businesses are increasing their desire for debt.

At Bank of America, third-quarter loan and lease balances totaled $ 927.74 billion, a slight increase from the second quarter but a 3% decrease from the year-ago quarter.

Non-interest income, including fees, increased 14% year-over-year to $ 11.67 billion.

The M & A boom has helped raise investment banking fees. That was $ 2.17 billion, up 23% from the previous year.

Adjusted transaction revenue was $ 3.63 billion, an increase of 9% over the previous year.

Profit was also boosted by the release of cash set aside to cover bad debt losses. So far, the pandemic loan default has not been achieved and banks are being urged to release a $ 1.1 billion reserve. Net depreciation has halved from a year ago to $ 436 million.

Analysts and investors are also paying attention to the expenses that have increased in the last quarter. Non-interest expenses were $ 14.44 billion, almost flat from the year-ago quarter.

Bank of America shares have risen 42% so far this year, up nearly 3% in pre-market trading on Thursday.

Bank earnings

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Write to Ben Eisen ([email protected])

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Bank of America’s quarterly profits rise 58% with high interest income

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