Bank of America (NYSE: BAC) reported its third quarter financial results during pre-market hours on Wednesday morning. The bank topped analysts’ earnings estimates, which sent shares 3% higher.
For the third quarter, Bank of America reported earnings of USD 0.56 per share on revenue of USD 22.8 Billion. Analysts expected earnings of USD 0.51 per share on revenue of USD 22.6 Billion.
The reported earnings includes a USD 2.1 Billion charge related to the partnership with First Data.
Average loan and lease balances in business segments rose to USD 923 Billion, increasing by 6% year-over-year. Consumer and commercial loans each increased by 6%.
Average deposit balances increased to USD 1.4 Trillion, representing a 4% increase year-over-year.
Bank of America’s Consumer Banking segment reported net income of USD 3.3 Billion on revenue of USD 9.7 Billion. Net income rose by 5%, while revenue increased by 3% year-over-year. Average deposits increased by 3% to USD 22 Billion, while average loans grew to USD 19 Billion. Consumer investment assets rose to USD 223 Billion, increasing by 9% year-over-year.
The Consumer Banking segment also reported a 10% increase in mobile banking users, reaching 28.7 million active users. Digital sales accounted for 26% of the Consumer Banking segment’s sales.
Global Wealth and Investment Management reported net income of USD 1.1 Billion on revenue of USD 4.9 Billion. Net income rose by 8%, while revenue increased by 2%, primarily driven by higher net interest income and asset management fees. Total client balances increase to USD 2.9 Trillion. Average deposits increased by 7% to USD 254 Billion, while average loans and leases rose to USD 9 Billion.
Global Banking net income was USD 2.1 Billion at the end of the quarter. Revenues rose by 8% to USD 5.2 Billion, driven by growth in investment banking fees and leasing related revenues.
Bank of America’s Global Markets segment reported net income of USD 0.8 Billion on revenue of USD 3.9 Billion. Net income declined by 8%, while revenues fell by 2% year-over-year. However, the bank reported sales and trading revenue of USD 3.2 Billion, increasing by 7% year-over-year. FICC revenue was USD 2.1, remaining flat year-over-year. Equities revenue totaled USD 1.1 Billion, increasing by 13% year-over-year.