By Senad Karaahmetovic
Shares of Bank of America (NYSE:BAC) are up almost 3% in the pre-open market after the bank reported better-than-expected Q3 earnings.
BAC reported an EPS of $0.81 on revenue of $24.50 billion to top the analyst estimate of $0.78 on revenue of $23.56 billion. Trading revenue, excluding DVA, rose 13% to $4.1 billion to beat the consensus of $3.91 billion. Overall, revenue rose 8%.
Bank of America reported a Return on average equity of 10.8% and a Return on average tangible common equity of 15.2%, both higher than the average analyst estimates.
"We continued to see strong organic client growth across our businesses, with increased client activity helping to drive revenue up by 8%. Our U.S. consumer clients remained resilient with strong, although slower growing, spending levels and still maintained elevated deposit amounts," said Chair and CEO Brian Moynihan.
Credit Suisse analysts said BAC delivered "a solid set of results."
"Upside was revenue-driven and broad based-- though no doubt there will be a good bit of focus on the NII upside (in this quarter and into 4Q22)," the analysts said in a client note.
Goldman Sachs analysts expect BAC shares to react "reasonably constructive" to the earnings report.