The consumer banking arm of Bank of America (BofA) has posted a net income of $1.76bn for the third quarter of 2015, an increase of 5% compared to $1.67bn a year ago.
For the quarter ended 30 September 2015, the unit’s total revenue increased 1.07% to $7.83bn from $7.75bn in the corresponding quarter of 2014.
The division’s provision for credit losses fell 2.99% to $648m from $668m a year earlier, driven by continued improvement in credit quality, primarily related to the small business and credit card portfolios.
Noninterest expense stood at $4.43bn, marginally down from $4.46bn a year ago. For the quarter, the unit’s average deposit balances rose 6.67% to $548.89bn from the year-ago quarter.
Client brokerage assets for the quarter increased 7.99% to $117.2bn from $108.53bn in the prior year quarter, mainly driven by strong account flows, partially offset by lower market valuations.
The bank also said that it issued 1.3 million new consumer credit cards in the third quarter, a rise from 1.2 million cards issued a year earlier.
Overall, the banking group posted a net income of $4.5bn or $0.37 per diluted share for the third quarter, as against a net loss of $232m or $0.04 per share in the year-ago period.
BofA CEO Brian Moynihan said: "We saw solid results this quarter by continuing to execute our long-term strategy. The key drivers of our business — deposit taking and lending to both our consumer and corporate clients — moved in the right direction this quarter and our trading results on behalf of clients remained fairly stable in challenging capital markets conditions.
"Our balanced approach to serving customers and clients is on track as the economy continues to move forward."