Bank of America reported third-quarter earnings for 2024, surpassing analyst expectations due to robust trading results. The bank’s revenue reached $25.49 billion, slightly above the $25.3 billion estimate. Earnings per share were 81 cents, beating the 77-cent forecast.
Despite a 12% drop in net income from the previous year, falling to $6.9 billion, these numbers were buoyed by increased trading and investment banking activity. Fixed income trading revenue rose 8% to $2.9 billion, and equities trading surged 18% to $2 billion, both exceeding estimates.
Net interest income (NII) was down 2.9% to $14.1 billion, yet it still edged out projections. This decline was offset by gains in trading and advisory services, demonstrating the bank’s diversified strength amid rising rates.
CEO Brian Moynihan highlighted the bank’s strategic positioning in the financial sector, emphasizing its ability to leverage Wall Street activities alongside traditional banking operations. Analysts noted that the bank is on an improving trajectory regarding NII, dependent on future interest rate movements.
Bank of America’s provision for credit losses came in slightly under expectations at $1.5 billion. The bank’s shares increased by about 2% following the report, reflecting investor confidence in its strategic direction and diversified revenue streams.
This performance aligns with trends seen in other major banks like JPMorgan Chase and Goldman Sachs, which have also benefited from strong trading and investment banking results this quarter.
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