In the past year, Americans have paid over $15 billion in overdrafts fees. Veuer’s Natasha Abellard (@NatashaAbellard) has the story.
Bank of America’s earnings in the third quarter came in stronger than expected, boosted by strength in its consumer banking business.
Overall, the bank posted a 13% jump in net income to $5.6 billion,
“Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results,” Brian Moynihan, CEO of Bank of America, said in a statement.
Revenue in BofA’s consumer banking division rose 10% to $8.8 billion, with loans up 8% and deposits up 9%. The bank also said that credit quality “remained strong.”
In the July through September quarter, Bank of America — which is now the nation’s second largest bank by customer deposit s— posted earnings per share of$0.48, above analyst expectations of $0.45 and up from 41 cents a year earlier, according to analysts polled by earnings-tracker Thomson Reuters.
Bank of America’s better-than-expected results continues a trend that began Thursday, when both J.P. Morgan Chase and Citigroup topped Wall Street forecasts.
More: J.P. Morgan earnings: 3 trends bank customers learned
More: What drove J.P. Morgan’s third-quarter profit? That loan you took out
In pre-market trading, Bank of America (BAC) shares were up $0.17 or 0.7%, to $25.62, after falling 1.5% Thursday. BofA’s stock was up 15% in 2017, vs. which was better than the nearly 14% gain for the broad market.
Like JPMorgan and Citigroup, BofA’s numbers were dragged down by weakness in its trading business, BofA saw a 15% decline, with the bulk of the pain felt in fixed income, where revenues fell 22%.
Wells Fargo, another large U.S. bank also reports earnings today.
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