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Bank of America’s stock jumps after profit beats expectations, revenue surprisingly rises – MarketWatch

Shares of Bank of America Corp. BAC, +2.27% rose 1.8% in premarket trading Wednesday, after the bank reported a third-quarter profit that fell less than expected, while revenue surprisingly increased, as consumer and global banking and wealth and investment management revenue increased to offset a slight decline in global markets revenue. Net income fell to $5.78 billion, or 56 cents a share, from $7.17 billion, or 66 cents a share, in the year-ago period. Total revenue rose to $22.81 billion from $22.72 billion, while the FactSet consensus was for a decline to $22.58 billion. Net interest income grew to $12.19 billion from $12.06 billion, above the FactSet consensus of $12.15 billion, and non-interest income slipped to $10.62 billion from $10.66 billion but topped expectations of $10.38 billion. Average loans rose 5% to $9 billion, driven by residential mortgages. Equities revenue grew 13% to $1.1 billion, helped by growth in client financing activities, while fixed income, currency and commodities revenue was flat at $2.1 billion as improvement in mortgages and municipal products was offset by weaker trading in FX and credit products. The stock has gained 2.6% over the past three months through Tuesday, while the Dow Jones Industrial Average DJIA, -0.02% has slipped 1.1%.

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