Bank of America Profit Climbs, Despite Trading Slowdown

Bank of America

Bank of America profit rises 15% on lower costs

Quarterly profit at the second-largest USA bank by assets rose 13% from $4.96 billion a year earlier.

Moynihan and his executives have promised for years that the bank will boost revenue from lending whenever interest rates rise.

Third-quarter revenue was $21.84 billion, up from $21.64 billion a year earlier.

Bank of America's quarterly return on equity was 8.1%, up from the prior quarter, but below the bank's 10% theoretical cost of capital.

Moynihan's quest to right Bank of America drew praise this month from Berkshire Hathaway's Warren Buffett, the firm's largest shareholder.

Bank of America benefited from Federal Reserve interest rate increases, which allowed it to increase the amount it charges customers for loans.

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The bank's shares rose 0.6% to $25.60 at 7:02 a.m.in early trading in NY.

Adjusted trading revenue fell 15 percent, with revenue from fixed income trading down 22 percent.

The second largest bank in the U.S. based on assets, it said that net income attributable to common shareholders rose to US$5.12bn, up from US$4.45bn recorded the previous year. Per-share earnings of 48 cents were up from a year earlier and topped analyst expectations of 45 cents a share.

BofA's non-interest expenses fell 2.5 percent to $13.14 billion in the third quarter.

Total revenue rose less than 1% to $21.8 billion from a year earlier, slightly below analysts' expectations of $21.9 billion. The lender is working to reduce annual expenses to $53 billion in 2018 to boost profits. JPMorgan JPM.N and Citigroup C.N also reported declines in trading revenue on Thursday.

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