Bank of America tops estimates on better-than-expected trading revenue

Bank of America topped expert estimates for third-quarter nett and gross connected better-than-expected trading results.

Here's what the institution reported:

• Earnings: 81 cents vs. 77 cents LSEG estimate
• Revenue: $25.49 cardinal vs. $25.3 cardinal estimate

The slope said Tuesday that nett income fell 12% from a twelvemonth earlier to $6.9 billion, oregon 81 cents a share, connected higher provisions for indebtedness losses and rising expenses.

Revenue roseate little than 1% to $25.49 cardinal arsenic gains successful trading revenue, plus absorption and concern banking fees offset a diminution successful nett involvement income.

Fixed income trading gross roseate 8% to $2.9 billion, topping the $2.74 cardinal estimate, connected spot successful currencies and involvement complaint activity. Equities trading jumped 18% to $2 billion, topping the $1.81 cardinal estimate, connected higher currency and derivative volumes.

Investment banking fees besides jumped 18% to $1.40 billion, topping the $1.27 cardinal estimate.

The bank's proviso for recognition losses of $1.5 billion, portion up from $1.2 cardinal a twelvemonth earlier, was somewhat nether the $1.57 cardinal estimate.

Shares of the slope climbed astir 1% successful premarket trading.

Net involvement income fell 2.9% to $14.1 billion, edging retired the $14.06 cardinal estimate. The lender signaled successful July that a rebound successful nett involvement income was coming successful the 2nd fractional of this year.

Bank of America has seen its haul from nett involvement income get compressed arsenic the Federal Reserve boosted rates implicit the past 2 years. Now that the Fed is easing rates, analysts volition beryllium keen to recognize however that volition interaction the bank.

NII, which is 1 of the cardinal ways that banks marque money, is the quality betwixt what a slope earns connected loans and investments and what it pays depositors for their savings.

JPMorgan Chase and Wells Fargo on Friday posted net that topped estimates, helped by their concern banking operations. Goldman Sachs and Citigroup are besides reporting results Tuesday, portion Morgan Stanley volition disclose net Wednesday.

This communicative is developing. Please cheque backmost for updates.