Bank of America profit beats on boost from reserve release, lending

By Kitco News / October 14, 2021 / www.kitco.com / Article Link

(Reuters) -Bank of America Corp beat estimates for third-quarter profit on Thursday, as it released reserves of $1.1 billion and recorded strong growth in its lending and equity-trading divisions.

Net income applicable to common shareholders rose to $7.26 billion, or 85 cents per share, for the quarter ended Sept. 30 from $4.44 billion, or 51 cents per share, a year earlier.

Analysts on average had expected a profit of 71 cents per share, according to the IBES estimate from Refinitiv.

Revenue from the bank's equities division rose 33%, driven by growth in client financing activities and strong trading performance.

Net interest income (NII), a key measure of how much banks make from lending, rose nearly 10% to $11.09 billion.

"Deposit growth was strong and loan balances increased for the second consecutive quarter, leading to an improvement in net interest income even as interest rates remained low," Chief Executive Officer Brian Moynihan said in a statement.

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 improved.

Because of the composition of its balance sheet, BofA is most sensitive among large U.S. banks to changes in interest rates.

Bank of America's revenue jumped 12% to $22.8 billion.

Reporting by Niket Nishant in Bengaluru and Elizabeth Dilts Marshall in New York; Editing by Anil D'Silva

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Recent News

Monetary-driven precious metals outperform major base metals

September 09, 2024 / www.canadianminingreport.com

Gold stocks hit by plunging equities markets

September 09, 2024 / www.canadianminingreport.com

Gold stocks down as metal and equities momentum fades

September 02, 2024 / www.canadianminingreport.com

Another Kazatomprom guidance announcement shakes uranium price

September 02, 2024 / www.canadianminingreport.com

Major monetary drivers still supporting gold

August 26, 2024 / www.canadianminingreport.com
See all >
Share to Youtube Share to Facebook Facebook Share to Linkedin Share to Twitter Twitter Share to Tiktok