Bank of America reported that its profit for the third quarter beat analysts’ expectations compared to the same period last year.
The company’s net profit rose to $7.27 billion, or $0.90 per share, compared with expectations of $5.58 billion, or $0.81 per share, and $0.82 per share in the same period last year.
The bank’s revenue rose 2.7% to $25.2 billion in the third quarter, compared with $24.50 billion a year earlier, compared with $25.14 billion.
Bank of America’s interest income rose 4% to $14.4 billion, about $300 million more than analysts expected, supported by higher interest rates and loan growth. The bank’s provisions for loan losses were better than expected, reaching $1.2 billion, compared to estimates of $1.3 billion.
CEO Brian Moynihan said the second-largest U.S. bank by assets continues to grow despite signs of an economic slowdown.
Bank of America should be one of the biggest beneficiaries of rising interest rates this year. Instead, the company’s stock was the worst performer among its big-bank peers in 2023. That’s because under Moynihan, lenders piled up long-dated, low-yield bonds during the Covid pandemic. These bonds lost value as interest rates rose.
Bank of America shares fell 18% this year from Monday to Monday, lagging rival JPMorgan Chase’s 10% gain.
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