Bank of America reported its third-quarter earnings on Tuesday, revealing that profits were up 10% from a year ago. This comes after the second-largest US bank got a boost from higher interest income in the face of rising Federal Reserve rates. Stocks in the bank rose by 1% during premarket trading.
Earnings for the third quarter stood at $7.8 billion while total revenue was $25.2 billion; a 3% rise from the previous year. Net interest income, which described the difference between income on loans and deposit payouts, rose by 4% from the previous year.
While the investment and trading revenues of Bank of America rose as well, CEO Brian Moynihan acknowledged that a slump had begun. “We did this in a healthy but slowing economy that saw US consumer spending still ahead of last year but continuing to slow,” the Bank of America CEO observed.