Bank of America (Bank of America Stock) reported results for the third quarter on Monday that were stronger than analysts had anticipated. The company overcame the impact of a significant increase in provisions for bad loans with excellent improvements in net interest income.
Bank of America Stock Price
Bank of America (NYSE:BAC) reported that its profit for the three months that ended in September was estimated at 81 cents per share. This figure represents a decrease of 4.7% when compared to the same period in the prior year but is modestly higher than the consensus forecast of 77 cents per share made by Wall Street analysts.
The bank said that group revenues increased by 8% from the previous year to $24.5 billion, which was much higher than the projections of $22.87 billion in total revenue. The bank said that its net interest revenue increased by 24% to $13.8 billion, while total loans increased by 12%.
However, Bank of America (NYSE:BAC) stated that it set aside approximately $378 million to cover the bad loan risk in its portfolio. This figure contrasts sharply with the release of approximately $1.1 billion in credit loss provisions during the third quarter of the previous year. In total, Bank of America’s portfolio included approximately $13 billion in loans.
“We continued to experience solid organic client growth across all of our businesses, and higher client activity helped to contribute to an 8% rise in revenue,” “said CEO Brian Moynihan. “Our consumer clients in the United States were resilient, with solid spending levels that were expanding at a slower rate but still maintaining substantial deposit quantities.”
He continued by saying, “Across the bank, we expanded loans by 12% over the course of the previous year as we supplied the financial resources to help our customers.” “Our staff did an excellent job of adjusting to our newly implemented capital needs, and as a result, our CET1 ratio has increased by 49 basis points to 11%, which is higher than our newly implemented regulatory minimums. I am really pleased with the hard work that all of my coworkers put in to satisfy our customers and stockholders.
During trading on Monday morning, immediately following the announcement of the previous quarter’s earnings, shares of Bank of America (NYSE:BAC) were marked 5.1% higher to reach a price of $33.24 per share.
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Author Valerie Remorosa 
