Finance Bank of America beats on earnings (BAC)

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Bank of America reported earnings Friday morning. The company increased revenues and profitability, despite a steep decline in trading.

Bank of America play

Bank of America

(REUTERS/Shannon Stapleton)
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Bank of America Merrill Lynch beat Wall Street estimates for third-quarter earnings Friday.

The bank reported earnings of $0.48 per share, even with the second quarter, beating analysts estimates of $0.46 per share.

"Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results," CEO Brian Moynihan said in a statement. "Revenue across our four lines of business grew 4 percent, even with a challenging comparable quarter for trading."

Here are the other key figures from the third-quarter results:

  • Revenues: $22.08 billion, down from $23.2 billion in the second quarter
  • Net income: $5.6 billion, up from $5.2 billion in the second quarter
  • Net interest income (NII): $11.4 billion, a 10% increase from last year and beating analyst estimates of $11.3 billion.
  • Consumer banking revenues increased 10% to $8.8 billion.
  • Wealth management revenues increased 6% to $4.6 billion.
  • Global banking revenues increased 5% to $5 billion.
  • Investment banking fees increased 1% to $1.5 billion, the best third-quarter performance since Bank of America acquired Merrill Lynch.
  • Total trading revenues were down 15% of $3.15 billion, beating estimates of $3.14 billion.
  • FICC trading revenues plummeted 22% to $2.17 billion, beating estimates of $2.15 billion; equities trading revenues increased 2% to $984 million.

Wall Street's trading decline — especially in bond trading — has been a point of focus, so Bank of America's 22% hit to fixed-income trading wasn't a shock.

Citi and JPMorgan, each of which kicked off the earnings cycle for US banks Thursday, reported fixed-income trading drop-offs of 16% and 27%, respectively. Nonetheless, the two banks each beat earnings estimates handily.

Similar to Citi and JPMorgan, Bank of America reported a rise in credit net charge offs, up 1% to $900 million from $888 million.

This story is developing.