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Declining Provisions and Dynamic Credit Boost Bank of America Profits | Photo credits: Reuters
October 14 (Reuters) – Bank of America on Thursday reported better-than-expected quarterly results, supported by strong growth in its credit and equity trading divisions and a reduction in provisions to the tune of $ 1.1 billion.
America’s second-largest bank net profit by assets in the third quarter was $ 7.26 billion (€ 6.25 billion), or 85 cents per share, from $ 4.44 billion one year earlier.
Analysts on average expected earnings of 71 cents per share, according to IBES data from Refinitiv.
Bank of America reported a 33% increase in revenues from its equities division, driven by growth in its client finance business and strong trading performance.
The bank’s net interest income (NII), a closely watched indicator measuring the profitability of lending activities, climbed 10% to $ 11.09 billion.
“Growth in deposits was strong and outstanding loans increased for a second consecutive quarter, leading to improved net interest income even though interest rates remained low,” the CEO commented in a statement. of the group, Brian Moynihan.
Bank of America had provisioned tens of billions of dollars last year to cover possible defaults due to the coronavirus crisis. It has worked to gradually reduce these provisions as the economic outlook improves.
Its revenues jumped 12% to $ 22.8 billion in the third quarter. (Report Niket Nishant in Bangalore and Elizabeth Dilts Marshall in New York, French version Juliette Portala)
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