Key points:
- Bank of America reported Q3 Earnings
- The company topped earnings, revenue estimates
- BAC shares are up over 2% premarket
Bank of America (NYSE: BAC) reported its third-quarter results on Monday, kickstarting a heavy week of U.S. earnings.
The bank reported revenue increased 8% to $24.5 billion, led by a 24% improvement in net interest income to $13.8 billion. The increase was driven by benefits from higher interest rates, and solid loan growth, according to the company.
Furthermore, the group reported a net income of $7.1 billion or $0.81 per share, beating forecasts of $0.77 per share.
Also Read: Biggest Winners From Late Q2 Earnings Season – What Do They Tell Us About The Markets?
“We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%,” said Brian Moynihan, Chair and CEO of Bank of America.
Moynihan added: “Our U.S. consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts. Across the bank, we grew loans by 12% over the last year as we delivered the financial resources to support our clients. Our team adapted well to our new capital requirements and improved our CET1 ratio by 49 basis points to 11%, above our new regulatory minimums.”
The bank's shares have tumbled almost 30% this year. However, lenders such as Bank of America have been able to benefit from higher rates, generating higher profits from their core deposits and lending activities.
According to Moynihan, the bank grew loans by over 12% over the last year as it supported its clients.
Bank of America shares gained 2.74% premarket following the report.
