CHARLOTTE – Bank of America Corp. (BAC) on Monday reported third-quarter earnings of $7.08 billion.
The bank, based in Charlotte, said it had earnings of 81 cents per share.
The results beat Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 79 cents per share.
The nation’s second-largest bank posted revenue of $30.36 billion in the period. Its revenue net of interest expense was $24.5 billion, which also topped Street forecasts. Nine analysts surveyed by Zacks expected $23.6 billion.
Monday’s upbeat news comes just days after Bank of America warned about a looming recession.
Economy to start losing 175,000 jobs a month, Bank of America warns
In a statement, Chair and CEO Brian Moynihan praised the results:
“We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%. Our U.S. consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated
deposit amounts,” he said.
“Across the bank, we grew loans by 12% over the last year as we delivered the financial resources to support our clients. Our team adapted well to our new capital requirements and improved our CET1 ratio [compares a bank’s capital against its assets, according to Investopedia] by 49 basis points to 11%, above our new regulatory minimums. I am proud of our teammates’ efforts to deliver for our clients and shareholders.”
Bank of America shares have dropped 29% since the beginning of the year, while the S&P’s 500 index has declined 25%. The stock has fallen 32% in the last 12 months.
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