Economy

Bank of America beats on earnings

Bank of America beats on earningsā€

Quarterly profit at the second-largest US bank by assets rose 13% from $4.96 billion a year earlier.

Earnings per share was up 48 U.S. cents from 41 USA cents, ahead of market expectations for 45 United States cents a share.

The lender posted its highest net income in six years as the chief executive officer cut expenses more than forecast and net interest income rose to the highest since 2011.

Wealth management revenues increased 6% to $4.6 billion.

The second largest bank in the U.S. based on assets, it said that net income attributable to common shareholders rose to US$5.12bn, up from US$4.45bn recorded the previous year. Earnings per share grew 17 percent to $0.48 from $0.41 a year ago.

Total revenue grew by 1% to US$22.08bn from US$21.86nm, a year earlier, again beating Wall Street's expectations for US$21.98bn. Ongoing increases in interest rates by the Federal Reserve also gave a boost to the bank.

On average, 25 analysts had expected the company to earn $0.45 per share, according figures compiled by Thomson Reuters. The bank and other major lenders warned that trading revenue would be under pressure. Net charge-offs increased 1 percent to $900 million, while the netcharge-off ratio declined to 0.39 percent from 0.40 percent.

Global Banking revenue went up 5 percent, while Global Markets' sales and trading revenue declined mainly as Fixed Income, Currencies and commodities fell 22 percent.

After an initial lift from last November's election, Bank of America shares climbed 4.6% in the past month as long-term bond yields have risen, a metric that is expected to benefit the bank's lending profits.



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