Bank of America Corp. (NYSE: BAC) beat analysts’ estimates for both profit and revenue in the third quarter. The bank earned 56 cents in per-share earnings from $12.1 billion in net interest income. The consensus expectation on Wall Street was for respective results of 54 cents and $12.2 billion. Third-quarter revenue was $22.81 billion, up from $22.72 billion a year ago. That also beat analysts’ expectations for $22.58 billion.
A one-time charge dented Bank of America’s third-quarter profit. Earnings were hit by a $2.1 billion charge tied to the end of a partnership with First Data. Excluding the impairment charge, net income rose 4 percent to $7.5 billion, or an adjusted 75 cents a share.
Three of the bank’s four main divisions reported gains in revenue. Profit rose in the bank’s consumer, wealth, and commercial units, but fell in the division that houses sales and trading. Its global banking business posted an 8 percent increase, rising to $5.2 billion for the quarter.
Net interest income at the bank held steady from the prior quarter, marking a 1 percent rise from the same quarter a year ago. Loans rose about 5 percent, and deposits increased by 4 percent from a year earlier. Net interest margin fell to 2.41 percent from 2.44 percent in the prior quarter.
Bank of America, the second-biggest U.S. lender after J.P. Morgan Chase, saw its shares rise 3.3 percent after the earnings announcement. The bank’s shares have climbed 21 percent this year.
