Bank of America Profit Climbs, Despite Trading Slowdown
By Rachel Louise Ensign
Bank of America Corp. said its third-quarter profit rose to $5.59 billion, despite trading headwinds.
Quarterly profit at the second-largest U.S. bank by assets rose 13% from $4.96 billion a year earlier. Per-share earnings of 48 cents were up from a year earlier and topped analyst expectations of 45 cents a share.
Third-quarter revenue was $22.08 billion, up from $21.86 billion a year earlier. Analysts had expected $21.98 billion.
Shares slipped 0.2% premarket.
After an initial lift from last November's election, Bank of America shares climbed 4.6% in the past month as long-term bond yields have risen, a metric that is expected to benefit the bank's lending profits. The lender also got an important vote of confidence in August when Warren Buffett's Berkshire Hathaway Inc. officially became the bank's largest shareholder, a result of an investment Berkshire initially made in 2011. Since then, Mr. Buffett has publicly praised Bank of America chief Brian Moynihan and said his firm plans to be a shareholder for a long time.
The Charlotte, N.C.-based lender faced some headwinds in the third quarter. The bank and other major lenders warned that trading revenue would be under pressure. And while long-term interest-rates have risen recently, they were low for much of the quarter.
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(END) Dow Jones Newswires
October 13, 2017 07:11 ET (11:11 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.