Bank of America CEO Brian Moynihan leaves the U.S. Capitol after a meeting with Republican members of the Senate Banking, Housing and Urban Affairs Committee on the issue of debanking, Thursday, Feb. 13, 2025.
Tom Williams | Cq-roll Call, Inc. | Getty Images
Bank of America on Wednesday reported third-quarter results that beat analysts’ expectations due to higher-than-expected investment banking revenue.
Here’s what the company reported:
- Earnings per share: $1.06 versus 95 cents expected, according to LSEG
- Income: $28.24 billion versus $27.5 billion expected, according to LSEG
The second-largest U.S. bank by assets said its profit rose 23% from a year earlier to $8.5 billion, or $1.06 per share. Revenue rose 10.8% to $28.24 billion.
The bank’s shares gained 4% on Wednesday. They’re up nearly 19% so far this year.
Like its peers, Bank of America’s activities on Wall Street helped fuel the quarter’s results.
Banks, including JPMorgan Chase And Goldman Sachs posted strong gains in trading and investment banking revenue during the third quarter, driven by increased activity among institutional investors and companies looking to acquire companies or raise capital.
Bank of America said investment banking fees jumped 43% from a year earlier to $2 billion, about $380 million more than analysts surveyed by StreetAccount expected.
Equity trading also contributed to the quarterly pace; revenue there rose 14% to $2.3 billion, about $200 million more than StreetAccount’s estimate.
Fixed-income trading rose 5% to $3.1 billion, matching expectations.
Bank of America also benefited from an improving outlook for credit losses during the quarter. The company said its allowance for credit losses fell about 13% to $1.3 billion, below StreetAccount’s estimate of $1.58 billion.
Net interest income rose 9% to $15.39 billion, about $150 million above StreetAccount’s estimate.
“With continued organic growth, each business segment saw improvements in its top and bottom lines,” CEO Brian Moynihan said in the earnings release. “Strong growth in loans and deposits, combined with efficient balance sheet positioning, resulted in record net interest income.”
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