U.S. stocks rise on Fed cut bets; earnings continue to flow
Investing.com - Bank of America has posted third-quarter net interest income that topped expectations, as the lender said it was bolstered by "strong" growth in both loans and deposits.
Returns at the firm’s global banking unit were also powered by a 43% surge in investment banking fees to above $2 billion, becoming the latest Wall Street giant to benefit from a recovery in dealmaking activity after a tariff-driven stalling earlier this year.
The segment’s revenue increased by 7% to $6.2 billion.
An uptick in asset management fees and client balances, partially stemming from a recent spike in stock market valuations, fueled a 10% jump in revenues at Bank of America’s global wealth and investment banking division to $6.3 billion as well.
Group-wide net interest income, a closely-watched metric tracking the difference between what a bank earns from loans and pays out on deposits, rose by 9% versus a year ago to $15.23 billion. Analysts had expected $15.03 billion, according to Bloomberg consensus estimates.
Total revenue, net of interest expenses, came in at $28.1 billion, while diluted earnings per shares rose to $1.06. Both were above forecasts.
The bank noted that it had returned $7.4 billion to shareholders through a combination of common stock divisions and stock repurchases. Analysts have been widely curious to see how the company will approach the pace of buybacks and manage capital, with more details expected to come at BofA’s investor day in November.
Shares of the lender were higher by more than 5% in premarket U.S. trading following the results.