Summary Revenues edged up 0.9 percent to $21.8 billion
NEW YORK (AFP) - Bank of America reported higher third-quarter profits Friday following a strong performance in consumer banking due to increased interest rates, offsetting weakness in trading.
The US banking giant reported earnings of $5.1 billion for the quarter ending September 30, up 15 percent compared with the year-ago period.
Revenues edged up 0.9 percent to $21.8 billion.
Bank of America benefited from Federal Reserve interest rate increases, which allowed it to increase the amount it charges customers for loans. This led to growth in profits from consumer banking, wealth and investment management and global banking.
Those gains, along with lower expenses, more than compensated for a steep decline in global markets, which fell victim to the difficulties as other banks that have seen trading revenues dry up amid low volatility.
Revenues in the closely watched fixed income, currency and commodities business fell 22 percent.
Like other banks that reported Thursday, Bank of America also scored a modest increase in overall loans.
Shares of Bank of America rose 0.8 percent in pre-market trading to $25.65.
