Investing.com - Bank of America (NYSE:BAC), the second largest U.S. bank, reported a smaller than expected third quarter loss ahead of Wednesday’s opening bell, sending its shares higher in pre-market trade.
Bank of America said it lost $0.01 cent per share in the three months ending September 30, below forecasts for a loss of $0.09 cents per share and compared to earnings of $0.20 cents per shares in the same period a year earlier.
The results include the previously announced pretax charge of $5.3 billion for the settlement with the Department of Justice, certain federal agencies and six states, which impacted earnings per share by $0.43 cents.
The bank’s third quarter revenue totaled $21.4 billion, beating estimates for revenue of $21.36 billion and compared to $21.74 billion in the year-ago period.
"We saw solid customer and client activity and improved profitability in most of our businesses relative to the year-ago quarter," said Chief Executive Officer Brian Moynihan.
"We remain focused on streamlining and simplifying our company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for our shareholders," he added.
Immediately after the earnings announcement, BAC shares rose 1.6% in trading prior to the opening bell.
Meanwhile, U.S. stock futures pointed to a modestly lower open. The Dow 30 futures pointed to a loss of 0.15% at the open, the S&P 500 indicated a decline of 0.3%, while the NASDAQ 100 signaled a fall 0.15% at the open.