Summary: Bank of America has reported a rise in profit for the third quarter, driven by increased interest income and a strong performance in investment banking and trading. Net income reached $7.27 billion, or 91 cents per share, compared to $6.58 billion, or 81 cents per share, in the same period last year. The bank’s investment banking and trading units exceeded market expectations, reporting higher revenue. Interest income also grew as Bank of America was able to charge higher rates on loans due to the Federal Reserve’s interest rate hikes. Overall, the strong financial performance reflects the resilience of the US banking sector amidst economic uncertainties.
Bank of America has announced a rise in its profit for the third quarter, driven by increased interest income and outperformance in investment banking and trading. The bank reported a net income of $7.27 billion, or 91 cents per share, compared to $6.58 billion, or 81 cents per share, in the same period last year.
BofA’s investment banking and trading units exceeded market expectations with higher revenue. This has helped the bank surpass the industry-wide slump. Interest income has also contributed to the strong financial performance. Bank of America’s net interest income (NII) rose 4% in the third quarter to $14.4 billion as the bank was able to charge customers higher rates on loans. This was made possible by the Federal Reserve’s interest rate hikes in its effort to combat inflation.
The positive financial results come as other major lenders, including JPMorgan Chase, Citigroup, and Wells Fargo, also reported an increase in net interest income. This has led the banks to raise their forecasts for the key metric. The rise in interest income is supported by healthy household finances and continued credit card spending by American consumers, despite concerns of an economic slowdown.
Tags: Bank of America, profit, interest income, investment banking, trading, financial performance, Federal Reserve, net interest income, lenders, economic slowdown