Wall Street profited a lot on the Bank of America income statement that was released on Thursday as third-quarter results helped lift the stock.
The bank's results reportedly hit $ 7.7 billion, easily beating the estimate of around $ 6.1 billion. Revenue also exceeded forecasts, coming out at $ 22.8 billion.
"We reported strong results as the economy continued to improve and our businesses regained the organic customer growth momentum we saw before the pandemic," said Brian Moynihan, chairman and CEO of the Bank of America.
Bank of America (ticker: BAC) is the second major bank to report results following JPMorgan Chase (JPM). Its shares often lagged during earnings season, but now it increased amid lower earnings and earnings estimates. At the premarket, stocks showed an increase of more than 2.6%.
The gains were boosted by the release of $ 1.1 billion in reserves that was set aside last year in anticipation of a wave of defaults due to the pandemic.
Net interest income also increased by $ 1 billion to $ 11.1 billion, thanks to strong growth in deposits and an investment of excess bank liquidity.
The bank also noticed some improvement in lending, with loan balances rising to $ 928 billion, from $ 908 billion in the previous quarter.
But the brightest spots in Bank of America's results were its advisory services, global asset and investment management businesses, whose results reached or almost reached record levels. Profit in the global banking sector reportedly rose 57%, driven by the continued high level of investment banking. Meanwhile, Bank of America's global wealth business posted a record $ 1.2 billion in profit.
Wells Fargo, Citigroup and Morgan Stanley will also report results today. Goldman Sachs will report on Friday.
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