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Bank of America profit boosted by reserve release

Bank of America (BAC) said Thursday its third-quarter earnings rose to $7.7 billion, or 85 cents a share, from $4.9 billion, or 51 cents a share, in the year-ago period. Revenue increased to $22.8 billion from $20.3 billion. Net interest income rose 10% to $11.1 billion. The bank released $1.1 billion in reserves to its bottom line, driven primarily by asset quality improvements. A survey of analysts by FactSet estimated earnings of 71 cents a share on revenue of $21.68 billion and net interest income of $10.6 billion. CEO Brian Moynihan said the bank results were "strong" as the economy continued to improve and its businesses regained the organic customer growth momentum seen before the pandemic. The stock rose 2% in pre-market trades. Shares of Bank of America are up 42.3% in 2021, compared to a rise of 16.2% by the S&P 500.

-Steve Gelsi

 

(END) Dow Jones Newswires

10-14-21 1113ET

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