Bank of America (BAC) Stock Edges Higher After Beating Q3 Views on Lower Credit Losses and Strong Asset Management Performance

October 14, 2021 7:16 AM EDT

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Bank of America (NYSE: BAC) stock price is up over 2% in pre-open Thursday after the company reported better-than-expected Q3 results.

BAC reported EPS of $0.85 per share to easily top the $0.71 per share expected from the surveyed analysts. Revenue came in at $22.87 billion vs the $21.8 billion Street estimate.

“We reported strong results as the economy continued to improve and our businesses regained the organic customer growth momentum we saw before the pandemic. Deposit growth was strong and loan balances increased for the second consecutive quarter, leading to an improvement in net interest income even as interest rates remained low,” CEO Brian Moynihan said in the release.

The company benefited from lower-than-expected credit losses, which improved by $2 billion. In the Global Banking unit, total investment banking fees soared 23% to near-record levels of $2.2 billion, while advisory fees hit a new record high of $654 million (up 65%).

"Asset quality remained strong, with loss rates approaching 50-year lows, enabling the release of loan loss reserves again this quarter. Because of the way we run our business, we were able to increase the quarterly dividend by 17% and buy back nearly $10 billion in common stock. As we head into our second decade of driving responsible growth, we are well positioned to support our clients, serve our communities and deliver for our shareholders,” added CFO Paul Donofrio.

Bank of America also reported record AUM balances of $1.6 trillion, up 23% compared to a year ago.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings, Hot Earnings

Related Entities

Pre Market Movers, BofA/Merrill Lynch