Bank of America Misses Q3 Profit But Stock Rises
Bank of America's Q3 profit was decreased by a one time charge, but the bank posted gains in its consumer, wealth, and commercial businesses, according to The Wall Street Journal.
Bank of America is the second-largest U.S. bank by assets and has reported quarterly profit at $5.78 billion, compared to $7.17 billion a year ago. The large discrepancy in profit was attributed to a $2.1 billion charge related to the end of the bank's payment processing partnership with First Data Corp.
Earnings per share was reported at 56 cents, beating analyst expectations by 2 cents. Revenue was reported at $22.81 billion, beating analyst expectations of $22.58 billion and growing from $22.72 billion a year prior. Profits increased in the bank's consumer banking and wealth and commercial units.
Loans increased 5 percent and deposits rose 4 percent from a year earlier. Trading revenue rose 4 percent as a result of higher revenue in fixed income and equities. Bank of America performed well in terms of trading revenue compared to competitors such as JP Morgan, Goldman Sachs, and Citigroup.
Bank of America shares rose 2.2 percent in premarket trading following the release of the earnings report, despite the hit in profit due to the one time charge regarding the end of the partnership with First Data Corp.