(New York) Business at Bank of America, the second-largest U.S. bank by assets, beat expectations in the third quarter, with revenue up 3 percent year-over-year, it said. she said in a press release on Tuesday.
Stimulated by the 11 key rate increases made by the American Federal Reserve since March 2022, the establishment recorded $25.2 billion in turnover over this period, a figure higher than the estimates of Wall Street analysts.
Net profit stood at $7.8 billion (10%) over one year. Reported per share and excluding exceptional items – a benchmark for the markets – it stood at $0.90, again above analysts’ expectations.
“We have gained customers and accounts across all industries. We did this in a healthy, but slow, economy, with American consumer spending remaining higher than last year, but continuing to slow down,” underlined Brian Moynihan, boss of Bank of America, quoted in the press release.
Net interest income (i.e. the difference between the interest received on loans granted to customers and the interest paid to savers and creditors) is increasing, beyond expectations. They actually reached $14.4 billion over the period (4%), supported by the profits made possible by higher interest rates.
In the third quarter, the bank returned $2.9 billion to shareholders in dividends and share buybacks.
With these results, Bank of America places itself in the wake of other American banking establishments, also boosted by rising interest rates. On Friday, JPMorgan Chase, for example, announced a sharp increase in net profit in the third quarter (35% to $13.15 billion), higher than analysts’ forecasts.
Citigroup also did better than consensus with net profit up 2% year-on-year to $3.5 billion.
In electronic trading before the opening of the New York Stock Exchange, Bank of America shares gained nearly 0.8% to $27.20.
