{"id":1695,"date":"2023-10-17T12:14:29","date_gmt":"2023-10-17T12:14:29","guid":{"rendered":"https:\/\/connectwithfund.com\/news\/bank-of-america-tops-profit-estimates-on-better-than-expected-interest-income\/"},"modified":"2023-10-17T12:14:30","modified_gmt":"2023-10-17T12:14:30","slug":"bank-of-america-tops-profit-estimates-on-better-than-expected-interest-income","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=1695","title":{"rendered":"Bank of America tops profit estimates on better-than-expected interest income"},"content":{"rendered":"<div id=\"RegularArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div class=\"group\">\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\">Bank of America<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> topped estimates for third-quarter profit on Tuesday on stronger-than-expected interest income.<\/p>\n<p>Here&#8217;s what the company reported:<\/p>\n<ul>\n<li>Earnings per share: 90 cents vs. expected 82 cent estimate from LSEG, formerly known as Refinitiv<\/li>\n<li>Revenue: $25.32 billion, vs. expected $25.14 billion<\/li>\n<\/ul>\n<p>Profit rose 10% to $7.8 billion, or 90 cents per share, from $7.1 billion, or 81 cents a share, a year earlier, the Charlotte, North Carolina-based bank said in a release. Revenue climbed 2.9% to $25.32 billion, edging out the LSEG estimate.<\/p>\n<p>Bank of America said interest income rose 4% to $14.4 billion, roughly $300 million more than analysts had anticipated, fueled by higher rates and loan growth.<\/p>\n<p>CEO Brian Moynihan said the bank continued to add clients despite economic pressures. While consumer banking deposits were down 8% in the quarter, the segment posted a 6% increase in revenue to $10.5 billion, according to the company.<\/p>\n<p>&#8220;We did this in a healthy but slowing economy that saw U.S. consumer spending still ahead of last year but continuing to slow,&#8221; he said in an earnings release.<\/p>\n<p>Bank of America was supposed to be one of the biggest beneficiaries of higher interest rates this year. Instead, the company&#8217;s stock has been the worst performer among its big bank peers in 2023. That&#8217;s because, under Moynihan, the lender piled into low-yielding, long-dated securities during the Covid pandemic. Those securities lost value as interest rates climbed.<\/p>\n<p>That&#8217;s made Bank of America more sensitive to the recent surge in the 10-year Treasury yield than its peers \u2014 and more similar to some regional banks that are also nursing underwater bonds. Bank of America had more than $100 billion in paper losses on bonds at midyear.<\/p>\n<p>The situation has pressured the bank&#8217;s net interest income, or NII, which is a key metric that analysts will be watching this quarter. In July, the bank&#8217;s CFO, Alistair Borthwick, affirmed previous guidance that NII would be roughly $57 billion for 2023. \u00a0<\/p>\n<p>Bank of America shares were up about 1% in premarket trading Tuesday. The stock had fallen 18% this year through Monday, trailing the 10% gain of rival <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-9\">JPMorgan Chase<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>.<\/p>\n<p>Last week, JPMorgan, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-10\">Wells Fargo<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> and Citigroup each topped expectations for third-quarter profit, helped by better-than-expected credit costs. <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-11\">Morgan Stanley<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> is scheduled to post results Wednesday. \u00a0<\/p>\n<p><em>This story is developing. Please check back for updates.<\/em><\/p>\n<\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.cnbc.com\/2023\/10\/17\/bank-of-america-bac-earnings-3q-2023.html\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America topped estimates for third-quarter profit on Tuesday on stronger-than-expected interest income. Here&#8217;s what the company reported: Earnings per share: 90 cents vs. expected 82 cent estimate from LSEG, formerly known as Refinitiv Revenue: $25.32 billion, vs. expected $25.14 billion Profit rose 10% to $7.8 billion, or 90 cents per share, from $7.1 billion, or 81 cents a share, a year earlier, the Charlotte, North Carolina-based bank said in a release. Revenue climbed 2.9% to $25.32 billion, edging out the LSEG estimate. Bank of America said interest income rose 4% to $14.4 billion, roughly $300 million more than<\/p>\n","protected":false},"author":1,"featured_media":1696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-1695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank of America tops profit estimates on better-than-expected interest income | ConnectWithFund<\/title>\n<meta name=\"description\" content=\"Bank of America topped estimates for third-quarter profit on Tuesday on stronger-than-expected interest income.Here&#039;s what the company reported:Earnings\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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