Bank of America (BAC) has reported third-quarter financial results that beat Wall Street’s forecasts on the top and bottom lines.
The second largest U.S. bank announced earnings per share (EPS) of $1.06 U.S., which topped the $0.95 U.S. expected among analysts. The profit was up 23% from a year earlier.
Revenue in the July through September period totaled $28.24 billion U.S., which was ahead of the $27.50 billion U.S. forecast on Wall Street. Sales rose 10.8% from a year ago.
As with other major U.S. banks, the strong results were largely attributed to investment banking activity as initial public offerings (IPOs) and mergers and acquisitions (M&A) return to Wall Street.
Bank of America said that its investment banking fees surged 43% to $2 billion U.S. during Q3, about $380 million U.S. more than analysts had anticipated.
Stock trading also contributed to the strong quarterly results. Revenue from equity trading increased 14% to $2.3 billion U.S., about $200 million U.S. more than estimates.
Fixed income trading at Bank of America during the quarter rose 5% to $3.10 billion U.S., matching analysts’ expectations.
BAC stock has gained 13% this year to trade at $50.09 U.S. per share.
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