Bank of America beats estimates on strong trading and higher rates

By The Exchange Team

Choppy markets and increasing rates helped Bank of America beat quarterly profit and sales projections.

Refinitiv data compares the company's report to analyst expectations: 81 cents vs 77 cents predicted, $24.61 billion compared. $23.57 billion projected

Bank of America's third-quarter profit decreased 8% to $7.1 billion, or 81 cents a share, due to a $898 million credit loss provision.

Non-GAAP revenue increased to $24.61 billion, net of interest expense. The bank's stock increased 6.1%.

Bank of America, led by CEO Brian Moynihan, was expected to benefit greatly from the Federal Reserve's rate-hiking effort.

Bank of America, JPMorgan Chase, and Wells Fargo are creating more revenue when rates climb, allowing them to make more profit from deposits and loans.

“Our U.S. consumer clients remained resilient with solid, albeit slower-growing, expenditure levels and elevated deposit amounts,” Moynihan added.