Bank Of America Profit Rises 10%
October 18, 2023
Profits for the third quarter at the Bank of America were up 10% from the previous year, as the second largest bank in the United States got a boost from higher interest income and a solid performance from the Wall Street unit.
It reported its earnings of a total of $7.8 billion and a revenue of $25.2 billion, which was increased by 3% from the previous year. The net interest income of the bank, which measured the difference between what it made on the loans and paid for its deposits, increased by 4% over the year.
The investment and trading were up as well, which is a sign that a slump in deal-making is beginning to thaw.
Brian Moynihan, the CEO, said, “We did this in a healthy but slowing economy that saw US consumer spending still ahead of last year but continuing to slow.”
Investors have been focusing on Bank of America’s performance this year in comparison with its peers. Its stock has hit a three year low in October and is trailing the JPMorgan Chase, Wells Fargo, and Citigroup since the year started.
Bank of America’s stock upped by 2.3% on Tuesday.
The other of its rivals also reported increases in the third quarter profit, which was due largely to the increasing interest income.
However, investors are concerned about how the Bank of America’s investment portfolio is progressing during this expanding period of increasing interest rates.
The CFO of the Bank of America, Alastair Borthwick, has urged caution about the hopes for a new step in investment banking. “We haven’t yet seen that confidence return to the equity capital markets necessarily in the same way,” he added. It may not be the time when people have decided yet to do their IPO for their company. There’s been more of that in the past couple of quarters, but we haven’t yet fully returned to that kind of confidence.
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