BofA profit lifted by better credit; balances soar

Brian Moynihan

Bank of America reported quarterly earnings and revenue that beat Wall Street's expectations on Tuesday, helped by favorable credit conditions, lower expenses and a rise in equity income.

The banking giant's shares jumped by more than a percent in pre-hours trading after the announcement.(Click here for the company's latest quote).

BofA posted third-quarter earnings excluding items of 20 cents per share, compared to having made no profit in the comparable year-ago quarter. Revenue was $21.7 billion, compared to $20.43 billion a year ago.

Analysts had expected Bank of America to report a profit of 18 cents per share on $22.03 billion in revenue, according to a consensus estimate from Thomson Reuters.

"This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us," said Chief Executive Officer Brian Moynihan, in a statement. "The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that."

Revenue from consumer and business banking at BofA rose to $7.52 billion in the quarter, with net income up 32 percent to $1.8 billion. Average deposit balances at the bank rose to $522 billion, an increase of $43.9 billion from a year ago.

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