Bank of America Corp (NYSE: BAC) reported its third quarter earnings for fiscal year 2017. The bank beat estimates in both earnings and revenue, but shares were trading down 1 percent shortly after open on Friday.
The bank reported a net income of $5.6 billion, a 13 percent increase year over year, or an EPS increase of $0.48 per share, a 17 percent increase year over year. Earnings also beat estimates of $0.45 by Thomson Reuters. The company reported revenue of $22.1 billion, beating Thomson Reuters’ estimates of $21.98 billion.
Consumer banking revenue rose by 10 percent year over year up to $8.8 billion. Loans were up 8 percent, and deposits were up 9 percent year over year. Mobile banking active users increased 11 percent up to 23.6 million.
The bank reported that Fixed Income, Currencies and Commodities (FICC) trading decreased by 22 percent due to less favorable market conditions and lower volatility rates.
Average loan balances rose to $46 billion, or 6 percent, to $842 billion total. Total average deposit balances increased $45 billion, or 4 percent, to $1.27 trillion total.
Bank of America repurchased $7.9 billion in common stock and paid $2.8 billion in common dividends year to date.
"Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results. Revenue across our four lines of business grew 4 percent, even with a challenging comparable quarter for trading,” said Brian Moynihan, Chief Executive Officer of Bank of America, “We delivered positive operating leverage year over year for the 11th consecutive quarter while continuing to invest in improved capabilities. Digital activity with customers continues to shape the way we provide products and services to customers”
JPMorgan Chase and Citigroup both reported their third quarter earnings on Thursday. JPMorgan reported revenue of $26.2 billion and an EPS of $1.76. Citigroup reported revenue of $18.2 billion and an EPS of $1.42.
All three banks are outperforming the S&P 500 for year to year performance, with Bank of America on top out of the three major banks.
Bank of America shares are up 63 percent year over year now.