- REUTERS/Shannon Stapleton
Bank of America Merrill Lynch beat Wall Street estimates for third-quarter earnings Friday.
The bank reported earnings of $0.48 per share, even with the second quarter, beating analysts estimates of $0.46 per share.
“Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results,” CEO Brian Moynihan said in a statement. “Revenue across our four lines of business grew 4 percent, even with a challenging comparable quarter for trading.”
Here are the other key figures from the third-quarter results:
- Revenues: $22.08 billion, down from $23.2 billion in the second quarter Net income: $5.6 billion, up from $5.2 billion in the second quarter Net interest income (NII): $11.4 billion, a 10% increase from last year and beating analyst estimates of $11.3 billion. Consumer banking revenues increased 10% to $8.8 billion. Wealth management revenues increased 6% to $4.6 billion. Global banking revenues increased 5% to $5 billion. Investment banking fees increased 1% to $1.5 billion, the best third-quarter performance since Bank of America acquired Merrill Lynch. Total trading revenues were down 15% of $3.15 billion, beating estimates of $3.14 billion. FICC trading revenues plummeted 22% to $2.17 billion, beating estimates of $2.15 billion; equities trading revenues increased 2% to $984 million.
Wall Street’s trading decline – especially in bond trading – has been a point of focus, so Bank of America’s 22% hit to fixed-income trading wasn’t a shock.
Citi and JPMorgan, each of which kicked off the earnings cycle for US banks Thursday, reported fixed-income trading drop-offs of 16% and 27%, respectively. Nonetheless, the two banks each beat earnings estimates handily.
Similar to Citi and JPMorgan, Bank of America reported a rise in credit net charge offs, up 1% to $900 million from $888 million.
This story is developing.