Bank of America Reports Strong Q3 Performance

By Greg Peters • Wednesday, October 15 10:21 • Permanent Link

Bank of America has reported a strong third quarter with a net income of $8.5 billion and earnings per share of $1.06, representing a 31% increase from the previous year. The revenue also saw a substantial 11% year-over-year growth, reaching $28.1 billion. The net interest income grew by 9% year-over-year to $15.2 billion.

In the consumer banking segment, the net income was $3.4 billion with a 7% increase in revenue, amounting to $11.2 billion. The average deposits reached $947 billion, marking a 1% increase and a notable 32% increase from pre-pandemic levels. The average loans and leases also grew by $7 billion, or 2%, and small business loans saw a significant 7% increase.

Furthermore, the combined credit/debit card spend increased by 6% to $245 billion, and the bank added approximately 212,000 net new consumer checking accounts. The consumer investment assets surged by 17% to reach $580 billion, and the total payments rose by 5% to $1.1 trillion. Additionally, digital logins accounted for 4.2 billion, representing 66% of total sales.

In the global wealth and investment management segment, the net income was reported at $1.3 billion, with a revenue increase of 10% to $6.3 billion. The client balances reached $4.6 trillion, marking an 11% increase, and the average loans and leases grew by $20 billion, or 9%.

The global banking segment reported a net income of $2.1 billion, and the total corporation investment banking fees (excluding self-led) surged by 43% to $2.0 billion. The average deposits in this segment saw a significant 15% increase, and there was a 6% growth in middle market average loan balances, along with a 12% improvement in treasury service charges.

Moreover, the global markets segment reported a net income of $1.6 billion, with sales and trading revenue up by 9% to $5.4 billion, which included net debit valuation adjustment (DVA) gains of $14 million. Excluding net DVA, the revenue was up by 8%.

As a result of these announcements, the company's shares have moved 2.52% on the market, and are now trading at a price of $50.09. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.