Bank of America Tops Q3 Earnings

Shares of Bank Of America Corp (NYSE:BAC) rose during premarket Monday morning pre-market hours after Bank of America reported its third-quarter earnings that beat EPS and a rise in profit in three quarters helped by strong bond trading revenue.

According to CNBC, the bank posted earnings of $0.41 a share on revenue of $21.64 billion. Profit of $4.45 billion represented a 6.6 percent gain from a year ago. Wall Street analysts had expected BOA to report earnings of 34 cents a share on revenue of $20.96 billion, according to a consensus estimate from Thomson Reuters. 

Bank of America reported a 14 percent rise in sales and trading revenue, helped by a 32 percent jump in fixed income trading revenue. Revenue from equities trading fell 17 percent. 

“I think this probably raises the bar a bit for sales and trading revenues going forward,” Jeffery Harte, principal, Sandler O’Neill, said on CNBC’s “Squawk Box.” But he wouldn’t extrapolate such strong performance to future quarters. 

“Strong client activity and good expense discipline combined to drive positive operating leverage as we continue to optimize and strengthen our balance sheet. With near-record levels of capital and liquidity, as well as robust underwriting standards, Bank of America is stronger, safer and better prepared to deliver for customers and clients than probably at any time in our history,” Chief Financial Officer Paul M. Donofrio said in the earnings release. 

“We remain focused on delivering long-term value to shareholders,” he said. “This quarter, we increased tangible book value per share by 11 percent while returning nearly $2.2 billion in capital to common shareholders.”

Shares of Bank of America were higher but volatile, rising more than 1.5 percent in premarket trade following the earnings release.

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