Bank Of America Reports Better Than Expected Q3 Results

Bank of America Corp. BAC is the fourth big bank to announce better than expected results for the third quarter. On Friday, JPMorgan Chase & Co. JPM, Citigroup Inc. C and Wells Fargo & Co. WFC delivered higher than estimated earnings.

Bank of America reported net income of $5.0 billion, or EPS of $0.41, for the third quarter. Street expected the company to deliver EPS of $0.33. Last year, the company earned $4.6 billion, or EPS of $0.38.

The company's revenue grew 3 percent from $21.0 billion to $21.6 billion thus exceeding the analysts' estimates of $20.94 billion.

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Commenting on the results, CEO Brian Moynihan said, "We delivered strong results this quarter by staying true to our strategy of responsible growth and focusing on the quality of the relationships with our customers and clients. We grew revenue, reduced expenses and continued to manage risk, resulting in a 17 percent increase in pretax earnings. Our investments in innovation, including industry-leading digital banking capabilities, continue to transform how we serve our customers. This innovation across our businesses is benefiting customers and shareholders."

The company's provision for credit losses dropped from $806 million to $850 million while net charge-offs fell from $932 million to $888 million.

While loan balances advanced three percent, deposit balances grew 6 percent in the third quarter.

The stock gained $0.27, or 1.69 percent, to $16.27 in the pre-market trading on Monday.