Bank of America third quarter profit rises on loan and deposit growth

Bank of America Corp on Wednesday reported a rise in earnings in the third quarter amid strong loan and deposit growth and an improved fee performance.

Bank of America shares were up 4.9% at USD52.52 in pre-market dealings on Wednesday in New York. The stock had closed up 2.5% at USD50.09 on Tuesday.

The Charlotte, North Carolina-based financial services company said net income jumped 23% to USD8.47 billion in the three months to the end of September from USD6.90 billion a year ago.

Diluted earnings per share rose 31% to USD1.06 from USD0.81.

Total revenue, net of interest expense, increased 11% to USD28.09 billion from USD25.35 billion. Net interest income grew 9.1% to USD15.23 billion from USD13.97 billion. Non-interest income was 13% higher at USD12.86 billion from USD11.38 billion.

"Strong net income growth drove third quarter diluted earnings per share up 31% from last year. This in turn drove strong improvement in our returns on assets and equity. Revenue grew 11% year-over-year. Strong loan and deposit growth, coupled with effective balance sheet positioning, resulted in record net interest income," said Chief Executive Officer Brian Moynihan.

"We also saw strong fee performance from our market-facing businesses. As revenues grew at a much faster rate than expenses, we drove good operating leverage and an efficiency ratio below 62%. With continued organic growth, every line of business reported top and bottom-line improvements."

Net income in the Consumer Banking division grew 28% to USD3.44 billion from USD2.69 billion, while net income in Global Wealth & Investment Management climbed 19% to USD1.27 billion from USD1.06 billion.

Global Banking net income increased 12% to USD2.13 billion from USD1.90 billion, while Global Markets net income rose 6.4% to USD1.65 billion from USD1.55 billion.