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In his near-decade long tenure as chief executive officer, Brian
Moynihan has tried to streamline the lender's sprawling
operations by cutting jobs, digitizing retail operations and
getting rid of crisis-era mortgages, which he inherited as part
of its acquisition of Countrywide Financial.
Two years ago, Moynihan pledged to cut expenses to $53 billion
by the end of this year and stick to that level until 2020.
Non-interest expense fell 2.4 percent to $13.07 billion in the
third quarter, in part due to a 2 percent cut in headcount
across businesses.
"Responsible growth, backed by a solid U.S. economy and a
healthy U.S. consumer, combined to deliver the highest quarterly
pre-tax earnings in our company's history," Moynihan said in a
statement.
Net income applicable to common shareholders rose 35 percent to
$6.7 billion in the third quarter ended Sept. 30.
Excluding items, the bank earned 67 cents per share, beating the
average analyst estimate of 62 cents per share, according to
I/B/E/S data from Refinitiv.
Loans in its consumer banking business grew 6 percent to $285
billion. Total deposits rose about 5 percent to $1.35 trillion.
BofA relies heavily on higher interest rates to maximize profits
as it has a large deposit pool and rate-sensitive mortgage
securities.
Total interest income - the difference between what a lender
earns on loans and pays on deposits - rose 6.4 percent to $11.87
billion.
Shares of the company were up 0.7 pct at $28.66 in early
trading.
(Reporting by Siddharth Cavale in Bengaluru; Editing by Anil
D'Silva)
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