Bank of America Corp's profit surged 15 percent in the third quarter as higher USA interest rates boosted income from consumer banking and the lender also met its own target on cost control.
Earnings per share was up 48 U.S. cents from 41 USA cents, ahead of market expectations for 45 United States cents a share. In pre-market activity, shares were gaining around 1.06 percent.
Moynihan and his executives have promised for years that the bank will boost revenue from lending whenever interest rates rise. "Digital activity with customers continues to shape the way we provide products and services to customers".
Bank of America on Friday reported $5.6 billion in third-quarter profit, an increase of 13 percent for the Charlotte-based bank from the same period a year ago. Average deposits grew 4 percent from past year, and average loan balances in business segments increased 6 percent. The lender has spent $70 billion on legal bills since the financial crisis - more than any other USA bank - including $30 billion on mortgage putbacks.
On an adjusted basis, revenue was $22.08 billion, up from $21.86 billion a year earlier.
Net interest income (NII): $11.4 billion, a 10% increase from past year and beating analyst estimates of $11.3 billion.
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On average, 25 analysts had expected the company to earn $0.45 per share, according figures compiled by Thomson Reuters.
In the quarter, provision for credit losses decreased 2 percent to $834 million.
Meanwhile, noninterest income decreased 7 percent to $10.7 billion, mainly due to lower mortgage banking income and lower sales and trading revenue, partially offset by higher asset management fees. Net charge-offs increased 1 percent to $900 million, while the netcharge-off ratio declined to 0.39 percent from 0.40 percent.
Consumer banking revenues increased 10% to $8.8 billion.
Trading revenue at Bank of America, excluding an accounting adjustment, fell 15% to $3.15 billion from $3.73 billion in last year's third quarter.