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Shares of the No.2 U.S. bank by assets rose about 1 percent in
premarket trade on Friday.
Revenue rose across three of BofA's four main businesses, with
consumer banking up 10 percent. Global markets business revenue
fell due to weak trading that is hurting the entire sector.
The bank also kept a tight leash on costs. Its efficiency ratio,
which measures expenses as a percentage of revenues, came in at
60 percent - in line with management's long-term target.
"Revenue across our four lines of business grew 4 percent, even
with a challenging comparable quarter for trading," Chief
Executive Officer Brian Moynihan said.
Benefiting from higher Federal Reserve interest rates, the
lender's net interest income rose 9.4 percent to $11.16 billion.
The Fed is widely expected to raise rates again in December.
BofA's large stock of deposits and rate-sensitive mortgage
securities make the lender particularly dependent on a rise in
interest rates to boost profits.
BofA's non-interest expenses fell 2.5 percent to $13.14 billion
in the third quarter. The lender is working to reduce annual
expenses to $53 billion in 2018 to boost profits.
Net income attributable to common shareholders rose to $5.12
billion in third quarter ended Sept. 30 from $4.45 billion in
the year-ago period. (http://bit.ly/2hDYUZK)
Earnings per share rose to 48 cents and trumped analysts'
average estimate of 45 cents per share.
Total revenue rose about 1 percent to $22.08 billion.
Adjusted trading revenue fell 15 percent, with revenue from
fixed income trading down 22 percent. JPMorgan <JPM.N> and
Citigroup <C.N> also reported declines in trading revenue on
Thursday.
(Reporting by Nikhil Subba and Sweta Singh in Bengaluru and Dan
Freed in New York; editing by Saumyadeb Chakrabarty)
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