Brian Moynihan, CEO of Bank of America, 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 on Thursday, February 13, 2025.
Tom Williams | Cq-roll Call, Inc. | Getty Images
Bank of America on Wednesday posted third-quarter results that exceeded analysts’ expectations on stronger-than-expected investment banking revenue.
Here’s what the company reported:
- Earnings per share: $1.06 vs. 95 cents expected, according to LSEG
- Revenue: $28.24 billion vs. $27.5 billion expected, according to LSEG
The second-largest U.S. bank by assets said profit rose 23% from a year earlier to $8.5 billion, or $1.06 per share. Revenue increased 10.8% to $28.24 billion.
Shares of the bank gained 4% Wednesday. They’ve climbed almost 19% so far this year.
Like its peers, Bank of America’s Wall Street businesses helped fuel the quarter’s results.
Banks including JPMorgan Chase and Goldman Sachs reported strong gains in trading and investment banking revenue during the third quarter on heightened activity among both institutional investors and corporations looking to acquire companies or raise capital.
Bank of America said investment banking fees surged 43% from a year earlier to $2 billion, about $380 million more than analysts surveyed by StreetAccount had expected.
Equities trading also contributed to the quarterly beat; revenue there rose 14% to $2.3 billion, roughly $200 million more than the StreetAccount estimate.
Fixed income trading rose 5% to $3.1 billion, matching expectations.
Bank of America also benefited from an improved outlook around credit losses in the quarter. The company said its provision for credit losses fell about 13% to $1.3 billion, which is below the $1.58 billion StreetAccount estimate.
Net interest income rose 9% to $15.39 billion, about $150 million more than the StreetAccount estimate.
“With continued organic growth, every line of business reported top and bottom-line improvements,” CEO Brian Moynihan said in the earnings release. “Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income.”
This story is developing. Please check back for updates.