Bank of America profits up
BANK of America has reported higher third-quarter profits behind strong performance in trading and overall loan growth.
Net income rose in all four of Bank of America’s operating divisions, with the consumer banking business boosted by increased mortgage production and global markets lifted by strong performance in fixed income, currencies and commodities trading.
Large US banks have responded to the low-interest rate environment by cutting expenses, which fell 3.2 percent to US$13.5 billion. Banks have also benefitted from moderate, but steady, growth in the US economy.
“Strong client activity and good expense discipline combined to drive positive operating leverage as we continue to optimise and strengthen our balance sheet,” said chief financial officer Paul Donofrio. Net profit rose 6.6pc to $4.5 billion. Revenues increased 3.1pc to $21.6 billion. –