Bank of America Profit Climbs, Despite Trading Slowdown
October 13 2017 - 7:26AM
Dow Jones News
By Rachel Louise Ensign
Bank of America Corp. said its third-quarter profit rose to
$5.59 billion, despite trading headwinds.
Quarterly profit at the second-largest U.S. bank by assets rose
13% from $4.96 billion a year earlier. Per-share earnings of 48
cents were up from a year earlier and topped analyst expectations
of 45 cents a share.
Third-quarter revenue was $22.08 billion, up from $21.86 billion
a year earlier. Analysts had expected $21.98 billion.
Shares slipped 0.2% premarket.
After an initial lift from last November's election, Bank of
America shares climbed 4.6% in the past month as long-term bond
yields have risen, a metric that is expected to benefit the bank's
lending profits. The lender also got an important vote of
confidence in August when Warren Buffett's Berkshire Hathaway Inc.
officially became the bank's largest shareholder, a result of an
investment Berkshire initially made in 2011. Since then, Mr.
Buffett has publicly praised Bank of America chief Brian Moynihan
and said his firm plans to be a shareholder for a long time.
The Charlotte, N.C.-based lender faced some headwinds in the
third quarter. The bank and other major lenders warned that trading
revenue would be under pressure. And while long-term interest-rates
have risen recently, they were low for much of the quarter.
Write to Rachel Louise Ensign at rachel.ensign@wsj.com
(END) Dow Jones Newswires
October 13, 2017 07:11 ET (11:11 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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