Strong 3rd Quarter for Bank of America

Narrow-moat

Consumer Banking was once again a major contributor to the strong performance in the quarter. Not much more could have gone right for the segment, as revenue was up, expenses and provisioning were down, and profits were up. Card income was up over 3% year over year, and balance sheet growth along with expanding net interest margins helped push net interest income up over 10% over the same period. Brokerage assets continued to climb for the segment, up over 20% year over year. Global Wealth and Investment Management also saw strong net income growth, up 31% year over year, as asset management fees were up 9% and assets under management continued to experience positive net flows. I-banking and trading-related revenue were generally down for the quarter, as revenue was down year over year for the Global Banking segment, and sales and trading revenue were down for the Global Markets segment. We would expect some variability within these segments, as markets wax and wane, but we like the strong trends within the core consumer and wealth management businesses and expect these to continue to drive performance going forward.

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