Bank of America (BAC) has reported a 10% year-over-year increase in its third-quarter profit, driven by stronger-than-expected interest income.
The second largest lender in the U.S. reported a profit of $7.8 billion U.S., or $0.90 U.S. per share for Q3, up 10% from a year ago and ahead of Wall Street forecasts that had called for earnings per share (EPS) of $0.82 U.S.
The bank’s revenue in the July through September period rose 3% to $25.32 billion U.S., narrowly beating analyst expectations for $25.14 billion U.S. in sales.
Bank of America attributed the strong showing to higher interest rates, which are currently at a 22-year high in the U.S., as well as continued loan growth.
Bank of America is the latest U.S. lender to report better-than-expected Q3 results. Last week, JPMorgan Chase (JPM), Wells Fargo (WFC) and Citigroup (C) each topped Wall Street expectations for their earnings.
Bank of America’s stock has declined 20% over the last 12 months amid a broader slump among U.S. financial securities. The company’s share price is currently at $26.99 U.S.
