Bank of America net income tops estimates amid higher investment banking fees

Investing.com -- Bank of America (NYSE:BAC ) has posted net profit per share that topped expectations despite slipping compared to the prior year, as higher investment banking fees helped the Wall Street lending giant offset a slight year-on-year decline in net interest income.

Like other big-name banks, BofA has benefited from a recovery in dealmaking, with total investment banking fees climbing by 18% to $1.4 billion.

Revenue, net of interest expense, came in at $25.3 billion, up by 1% and above projections of $25.25 billion.

For the three months ended on Sept. 30, BofA posted net income of $6.9 billion, translating to $0.81 per diluted share. Analysts had predicted $0.76 a share.

However, the figure decreased from $7.8 billion, or $0.90 per share, in the corresponding period in 2023.

Net interest income (NII), or the difference between what the bank makes from loans and pays out in deposits, fell by 3% from the third quarter last year to $14.0 billion.

The bank said the dip was linked to higher asset yields and loan growth being more than outweighed by elevated deposit costs -- in a sign that customers were demanding more return for putting their money into the bank.

But on a quarter-by-quarter basis, NII increased by 2% thanks in part to fixed-rate asset repricing.

BofA also left its provisions for credit losses unchanged at $1.5 billion. In the prior quarter, the company had bumped up provisions by more than a third from the previous year to cover for potentially delinquent loans.

In a statement, CEO Brian Moynihan added that BofA is receiving an ongoing boost from "investments in the business," adding: "We continue to drive the company forward in any environment.”

Source: Investing.com