Bank of America (NYSE: BAC) beat analysts’ estimates for third-quarter profit and revenue as its consumer and advisory businesses offset a slump in trading.
The bank said Wednesday that net income excluding an impairment charge rose 4% to $7.5 billion, or an adjusted 75 cents a share. When including the $2.1 billion charge tied to the end of a partnership with First Data, net income fell to 56 cents a share, exceeding the 51-cent estimate of analysts
Three of the bank’s four main divisions reported gains in revenue, led by its global banking business, which posted an 8% increase to $5.2 billion on higher investment banking fees. Citing a boost from hiring more bankers in a push for middle-market deals, the bank posted a 27% increase in advisory fees to $1.5 billion, exceeding the $1.27 billion estimate.
The performance was the biggest gain in investment banking revenue reported so far of any major Wall Street firm.
Consumer banking revenue rose 3% to $9.7 billion on increased interest income as the bank grew loans by 7% and deposits by 3%. Wealth management revenue climbed 2% to $4.9 billion on higher interest and asset management fees.
In the Wall Street trading division, revenue excluding accounting charges fell 2% to $3.88 billion. But the trading desks essentially matched expectations, producing $2.1 billion in fixed income revenue and $1.1 billion in equities trading revenue.
Total company revenue was almost unchanged from a year earlier at $23 billion, edging out the $22.79-billion estimate.
CEO Brian Moynihan said. "We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat."
BAC began trading Wednesday up 92 cents, or 3.1%, to $30.67.
