Profit also increased with the release of cash set aside by the bank to cover loan losses
Revenue totaled $22.77 billion, up 12% from $20.34 billion a year ago. It beat analysts’ expectations for revenue of $21.68 billion.
Much of the country’s economic activity flows through Bank of America and its peers, offering a real-time view of how consumers and businesses are recovering from the pandemic.
The bank benefited from a rebound in net interest income, which includes money it makes on loans and holdings of debt securities. Net interest income rose 10% from a year earlier to $11.1 billion.
Despite the recovery in the economy, banks have had difficulty growing their loan books this year. JPMorgan Chase & Co. reported Wednesday that its loan book was basically flat from the second quarter, but executives said they see signs that consumers and businesses have a growing appetite for debt.
At Bank of America, loans and leases outstanding in the third quarter totaled $927.74 billion, up slightly from the second quarter but down 3% from a year ago.
Non-interest income, which includes fees, rose 14% from a year ago to $11.67 billion.
The boom in mergers and acquisitions helped drive up investment banking fees, which rose 23% from a year earlier to $2.17 billion.
Adjusted business revenue was $3.63 billion, up 9% from a year ago.
Profit was also boosted by the release of cash set aside to cover loan losses. So far, pandemic loan defaults have failed, prompting the bank to release $1.1 billion of its reserves. Net charge-offs fell in half from a year ago to $463 million.
Analysts and investors are also watching the rise in expenses in recent quarters. Non-interest spending was flat from a year earlier, at about $14.44 billion.
Bank of America’s share price, which is up 42% so far this year, traded nearly 3% higher in premarket trading Thursday.
Ben Eisen [email protected] . Feather