Bank of America Q3 results are ahead of market forecasts with a 32.2% rise in net income year-on-year to $7.17bn.
The results represent the highest quarterly pre-tax earnings in the history of Bank of America.
Bank of America continues to benefit from Trump’s tax cuts and the rise in interest rates.
Bank of America Q3 retail banking highlights:
Net income at Bank of America’s Consumer banking unit rose by 49% y-o-t to $3.1bn.
Other highlights included:
- Consumer loans up 6% to $285bn;
- Deposits up 4% to $688bn;
- Merrill Edge brokerage assets exceeded $200bn, up 22%;
- Net interest income increased by 10% or $651m driven by higher interest rates and deposit and loan growth, and
- Bank of America’s retail banking cost-income ratio improved by 5 percentage points to 46%, and
- Active mobile banking users rose by over 10% to 25.99 million;
In addition, digital highlights included a 17% rise in mobile channel usage. Digital sales account now for 23% of all retail banking sales. Person to person payments using Zelle have more than doubled in the past year to 42.5 million payments.
Also of note is Bank of America’s AI virtual assistant Erica. It has attracted 3.4 million users since its roll out in April.
Bank of America ends the third quarter with 4,385 branches. The branch network overall has reduced by a net 130 branches but includes 53 new openings and 404 branch renovations.
Brian Moynihan, Chairman and Chief Executive Officer said: “Our high-tech, high-touch approach continues to drive both client satisfaction and efficiencies. Nearly a quarter of deposit transactions this quarter were performed via mobile devices.
“We continue to expand into new markets, recently opening our first financial centre in Pittsburgh. We plan to open in Salt Lake City in the coming months, with additional markets to follow.”