Shares of Bank of America Corp (NYSE: BAC) fell more than 3% in premarket trading after the bank reported adjusted earnings per share of $1.08 for the third quarter, falling short of analysts' estimates of $1.10, as the bank incurred $1.2 billion in regulatory settlement charges that weighed on its results.
The bank reported revenues of $30.0 billion, up 3% year-on-year, driven by net interest income of $16.4 billion, up 8% from last year, amid rising loan and deposit balances and the repricing of fixed-interest assets.
The results included $1.2 billion in regulatory settlement charges, or $0.17 per share, which reduced GAAP-compliant net income to $6.9 billion, or $0.91 per share, compared with $8.3 billion, or $1.04 per share, in the same quarter last year.
Average loans and leases grew 6% to $1.23 trillion, marking the tenth consecutive quarter of growth, with increases across all business segments. Average deposits also rose 2% to $2.02 trillion.
Chairman and CEO Brian Moynihan said: “The team achieved organic growth, deepened relationships with existing clients, and attracted new ones. Despite a decline in investment banking, sales, and trading revenues, commercial lending grew across all client segments.”
Investment banking fees fell 11% to $1.8 billion, while sales and trading revenue declined 5% to $5.1 billion. Fixed income revenue dropped 17% to $2.6 billion, while equity revenue rose 11% to $2.5 billion.
The bank's provision for credit losses was $1.3 billion, almost unchanged from the same quarter last year, while net write-offs fell to $1.3 billion from $1.4 billion a year ago.
The bank’s Common Equity Tier 1 (CET1) capital ratio reached 10.9%, clearly exceeding the regulatory minimum limits.
