FX.co ★ Bank of America quarter profits rise by one third

Bank of America Corp (the BofA), the second largest bank in the United States, reported the net profit rise by 33.3% in the third quarter of 2018. The bottom line profit was $7.2 billion, or 66 cents per share, compared to $5.4 billion, or 46 cents per share, over the corresponding period last year.

According to a press release, revenue climbed 4.6% up to $22.8 billion, against $21.8 billion on the previous year.

Earnings per share and revenue exceeded market forecasts. Analysts estimated the BofA income at 62 cents per share on average with the revenue of $22.7 billion.

The bank’s net interest income inched up by 6% in the last quarter to $11.9 billion, which reflects the growth of interest rates, as well as an increase in deposits and loans. Commission income gained 2% to $10.9 billion.

Loan loss provisions contracted by $118 million to $716 million.

Loans totaling $29 billion were issued during the third quarter, and now the bank’s loan portfolio amounts to $871 billion. Deposits grew by 4% to $1.3 trillion.

The BofA division working with individuals increased its net profit in July-September by 49% to $3.1 billion. The wealth and investment management department’s profit rose by 31% to $1 billion, the global banking unit’s earnings topped up 13% to $2 billion, the global market division reported a 21% net income growth up to $912 million.

Since the beginning of this year, the bank has bought out its own shares in the amount of $14.9 billion and paid out $4 billion in dividends to shareholders. The bank's capitalization has decreased by 3.6% to $284.3 billion during this year.