Bank of America Chairman and CEO Brian Thomas Moynihan speaks during the U.S. Senate Banking, Housing and Urban Affairs Committee oversight hearing on Wall Street firms, on Capitol Hill in Washington, U.S., December 6, 2023.Â
Evelyn Hockstein | Reuters
Bank of America topped analyst estimates for third-quarter profit and revenue on better-than-expected trading results.
Here’s what the company reported:
- Earnings: 81 cents vs. 77 cents LSEG estimate
- Revenue: $25.49 billion vs. $25.3 billion estimate
The banks said Tuesday that net income fell 12% from a year earlier to $6.9 billion, or 81 cents a share. Revenue rose less than 1% to $25.49 billion as a rise in trading revenue and asset management and investment banking fees offset a decline in net interest income.
How quickly will Bank of America benefit from falling interest rates?
That’s a key question after the lender signaled in July that a rebound in net interest income was coming in the second half of this year.
Bank of America has seen its haul from net interest income get compressed as the Federal Reserve boosted rates over the past two years. Now that the Fed is easing rates, analysts will be keen to understand how that will impact the bank.
NII, which is one of the key ways that banks make money, is the difference between what a bank earns on loans and investments and what it pays depositors for their savings.
JPMorgan Chase and Wells Fargo on Friday posted earnings that topped estimates, helped by their investment banking operations. Goldman Sachs and Citigroup are also scheduled to report results Tuesday, while Morgan Stanley will disclose earnings Wednesday.
This story is developing. Please check back for updates.
