Bubbling income brought Bank of America a surprising amount of profit in the summer, like other financial institutions in the USA.
In the third quarter, the institute earned around 8.5 billion US dollars (7.3 billion euros), almost a quarter more than a year earlier, as it announced on Wednesday in Charlotte (US state of North Carolina). Net interest income and stock trading grew more than analysts expected. Bank of America shares were temporarily up 4.47 percent at $52.33 in premarket trading on the NYSE.
Overall, the bank’s income climbed by eleven percent to $28.1 billion. Net interest income alone jumped nine percent year-on-year to $15.2 billion, and stock trading generated 14 percent higher returns than a year earlier. Analysts on average had expected a smaller increase.
At the same time, Bank of America set aside less money for impending loan defaults: after $1.5 billion in the same period last year, it was now $1.3 billion. Analysts, however, had expected an increase in risk provisions.
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CHARLOTTE (dpa-AFX)
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