Bank of America (BAC, Financial) reported strong third-quarter results, with net interest income showing signs of improvement despite a slight decline. The bank had previously indicated a rebound in net interest income in the second half of the year. Net interest income for Q3 was $14.1 billion, slightly above the forecast of $14.06 billion, though representing a year-over-year decrease of 2.9%.
Total revenue reached $25.49 billion, slightly exceeding expectations of $25.3 billion. Earnings per share came in at $0.81, surpassing analyst predictions of $0.77 per share. These results reflect robust investment banking and trading performances, helping offset the drop in net interest income.
Strong trading activity and increased fees from asset management and investment banking led to a 12% rise in revenue from equities, fixed income, forex, and commodities trading, totaling $4.93 billion. Sales and trading revenue also increased by 12% to $4.9 billion, marking the tenth consecutive quarter of year-over-year growth. The bank's equity division saw an 18% increase, while fixed income, currency, and commodities climbed by 8%.
The investment banking sector exceeded expectations, with income growing 18% to $1.4 billion, driven by renewed confidence in market conditions and client activity in bond and stock issuance. As a result of the positive earnings report, Bank of America shares rose by 3% in premarket trading, with a year-to-date gain of nearly 24% as of Monday.
