Home Market News Bank of America Reports Strong Q3 Earnings on Rising Interest Rates and Global Markets Growth

Bank of America Reports Strong Q3 Earnings on Rising Interest Rates and Global Markets Growth

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Bank of America Reports Strong Q3 Earnings on Rising Interest Rates and Global Markets Growth
Bank of America

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Bank of America’s Q3 Earnings Beat Estimates, Driven by Interest Rate Increases and Global Markets Success

Bank of America (NYSE:BAC) has reported strong Q3 earnings, surpassing Wall Street expectations. This achievement can be attributed to the positive impact of higher interest rates and the continued growth of its Global Markets business.

Key Financial Highlights

  • Q3 EPS of $0.90, exceeding the average analyst estimate of $0.82.
  • Net interest income (FTE basis) increased to $14.5B, up from $14.2B in the prior quarter.
  • Noninterest income amounted to $10.8B.
  • Provision for credit losses rose to $1.23B.
  • Q3 noninterest expense decreased to $15.8B.
  • Return on average tangible common shareholders’ equity was 15.47%.

Business Segment Performance

Bank of America’s various business segments demonstrated solid performance in the third quarter:

Consumer Banking

Revenue remained flat at $10.5B compared to the previous quarter. Net income was $2.86B.

Global Wealth and Investment Management

Revenue increased to $5.32B, up from $5.24B in the previous quarter. Net income was $1.03B.

Global Banking

Revenue decreased to $6.20B from $6.46B in Q2. However, it showed growth compared to $5.59B in Q3 2022. Net income stood at $2.57B.

Global Markets

Revenue reached $4.94B, up from $4.87B in the previous quarter and $4.48B in Q3 2022. Net income (ex-DVA) was $1.26B. Sales and trading revenue rose 8% year-on-year, driven by a 6% increase in fixed income, currency, and commodity trading and a 10% increase in equities trading.

Outlook and Conclusion

“We added clients and accounts across all lines of business,” said Bank of America Chair and CEO Brian Moynihan. Despite the slowdown in the economy, the bank’s performance remained strong in a healthy environment. With the positive momentum from rising interest rates and the success of its Global Markets business, Bank of America seems well-positioned for continued growth.

For more detailed information about Bank of America’s Q3 earnings, you can access the conference call scheduled at 8:30 AM ET.

Earnings announcement: Bank of America (BAC) reported GAAP EPS of $0.90, beating expectations by $0.08. Revenue was $25.2B, exceeding estimates by $130M.