Sunday, 24 October 2021 06:03 GMT

Bank Of America's Profit Jumps On Release Of Loan Reserves


(MENAFN- Baystreet.ca) Bank Of America's Profit Jumps On Release Of Loan Reserves

Bank of America (NYSE:BAC) beat Wall Street estimates for third-quarter profit as it released loan reserves of $1.1 billion U.S. and recorded strong growth in its lending and equity-trading divisions.

Net income rose to $7.26 billion U.S., or 85 cents U.S. per share, for the quarter ended September 30, from $4.44 billion U.S., or 51 cents U.S. per share, a year earlier.

Analysts, on average, had expected a profit of 71 cents U.S. per share, according to Refinitiv data. Revenue from the bank's equities division rose 33%, driven by growth in client financing activities and strong trading performance.

Bank of America's overall revenue jumped 12% to $22.8 billion U.S. in the third quarter from a year earlier. Net interest income, a key measure of how much banks make from lending, rose nearly 10% to $11.09 billion U.S.

Bank of America had set aside tens of billions of dollars last year to cover possible loan defaults, which it has steadily been releasing as the economic outlook improves.

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