Bank of America Corp (NYSE: BAC), the second largest bank assets in the US, reported on Monday an increase in profit for the first time in three quarters, supported by good results in bond trading segment.
The net profit attributable to shareholders rose 6.6% to $ 4.45 billion in the third quarter ended September 30, from $ 4.18 billion a year earlier. Earnings per share rose to 41 cents from 38 cents in the same period 2015.
Analysts on average expected a profit of 34 cents per share, according to Thomson Reuters I/B/E/S. It is not clear whether it is possible to compare the figures announced by the bank with the consensus forecast.
The revenue from operations in trading fixed income assets, currencies and commodities, jumped by 32% in annual terms after the Brexit caused volatility and changes in the expectations of market participants with regard to the monetary policy of central banks in the US, Europe and Japan.
Non-interest expenses fell 3.3% to $ 13.48 billion. BofA, like other big banks, cut costs to compensate for declining revenues from lending after years of low interest rates.
In July, the head of BofA, Brian Moynihan, announced its intention to reduce the annual cost of the bank by another $5 billion by 2018, bringing the total amount to $53 billion, compared with $58 billion in 2015.
BofA, the shares of which rose 1.6% to $ 16.25 during the off-stock trading, said that revenue without interest expenses increased by 3% to $ 21.64 billion.
The net interest income of the bank rose 3% to $ 10.20 billion, which is the first growth in the last three quarters.
As for the US stock market as a whole, it ended Monday session lower. Dow Jones Industrial Average index fell 51.98 points (0.16%) to 18,086.40 points. Standard & Poor's 500 by this time dropped 6.48 points (0.30%) to 2126.50 points. Nasdaq Composite declined by 14.34 points (0.27%) to 5,199.82 points.