Bank of America profit rises 15 percent on lower costs

Bank of America profit rises 15 percent on lower costs

Net income attributable to common shareholders rose to $5.12 billion in third quarter ended September 30 from $4.45 billion in the year-ago period.

Bank of America, the second-largest USA bank by assets, reported a 15% rise in quarterly profit as the lender kept a tight leash on costs and benefited from higher interest rates. Berkshire Hathaway took a $11.5 billion investment gain earlier this year when it converted preferred shares into common stock. The average estimate of 26 analysts surveyed by Bloomberg was for per-share profit of 46 cents.

Total revenue rose less than 1% to $21.8 billion from a year earlier, slightly below analysts' expectations of $21.9 billion.

The bank also kept a tight leash on costs.

It becomes the latest bank to report third-quarter results. Since then, Mr. Buffett has publicly praised Bank of America chief Brian Moynihan and said his firm plans to be a shareholder for a long time. Citigroup said net income rose 8 percent to $4.13 billion, or $1.42 a share.

Bank of America benefited from Federal Reserve interest rate increases, which allowed it to increase the amount it charges customers for loans. Global markets business revenue fell due to weak trading that is hurting the entire sector.

BofA's non-interest expenses fell 2.5 percent to $13.14 billion in the third quarter. The lender has spent $70 billion on legal bills since the financial crisis - more than any other US bank - including $30 billion on mortgage putbacks. Mr. Moynihan has made cost cutting a key tenet of his business strategy and previous year promised to cut $5 billion in annual expenses by 2018.

Related Articles

  • Oppo F3 Lite With 16-Megapixel Front Camera Launched: Price, Specifications

    Oppo F3 Lite With 16-Megapixel Front Camera Launched: Price, Specifications

    Oppo just unveiled a smartphone in Vietnam called the Oppo F3 Lite that joins the ranks of the Oppo F3 and Oppo F3 Plus. OPPO F3 Lite sports a 5.2 inch HD (1280×720 pixels) 2.5D curved glass Display protected with Corning Gorilla Glass 4.
    New Orleans police officer shot, killed in line of duty

    New Orleans police officer shot, killed in line of duty

    The officer was able to shoot the suspect, who retreated into a nearby apartment and was eventually captured by a S.W.A.T. As the police stepped out, Harrison said a man opened fire with a gun, striking one of the officers multiple times.

    Great Wall to build MINIs in China

    The German carmaker now has a joint venture with Brilliance China Automotive Holding, with the contract to expire by 2028. The prospective deal focuses specifically on electric vehicles, according to sources familiar with the matter.
  • 'Roswell' Reboot in the Works at The CW

    'Roswell' Reboot in the Works at The CW

    The original Roswell series debuted on the WB network in 1999 before moving to UPN for its third and final season. Roswell may be coming back to television - but with an update for the Trump era.
    Rafael Nadal marches into Shanghai Masters quarters

    Rafael Nadal marches into Shanghai Masters quarters

    Cilic was broken for the first time in his 29th service game of the week at 3-3 in the second set by Ramos-Vinolas. While a Nadal-Federer final looms, Argentina's Juan Martin del Potro could ruin the script, as he did at the U.S.
    SCA rules against Zuma and NPA in spy tapes appeal — Newsflash

    SCA rules against Zuma and NPA in spy tapes appeal — Newsflash

    Either of the two may yet approach the Constitutional Court or they may decide to drop the the appeal route. Judgement in the eight-year-long court battle will be handed down in Bloemfontein on Friday.
  • SC puts on hold Centre's plan to deport Rohingyas

    SC puts on hold Centre's plan to deport Rohingyas

    The Supreme Court on Friday deferred the hearing on the deportation of Rohingya Muslims in India to 21 November. The apex court stated, 'We have to strike a balance.
    UL fraternities suspended after LSU hazing death

    UL fraternities suspended after LSU hazing death

    Ten current and former members of the Phi Delta Theta fraternity are facing charges in connection with Gruver's death. Hazing is a misdemeanor crime, but it could result in expulsion from LSU and up to 30 days in jail for the suspects.
    Supreme Court refuses to modify order on cracker sales in Delhi

    Supreme Court refuses to modify order on cracker sales in Delhi

    However, those who had already bought firecrackers can still burst them during the Hindu festival of lights celebrated mostly across northern India .
  • Bryan Nehman On US Soccer Not Going To The World Cup

    Bryan Nehman On US Soccer Not Going To The World Cup

    To get to the World Cup next time, Coach Robinson says changes need to be made at the college level in the U.S. It may have turned out to be a longer-term project than we had wished, but not all the factors are under U.S.
    Microsoft Launcher offers 'Continue on PC' option for Android phones

    Microsoft Launcher offers 'Continue on PC' option for Android phones

    Microsoft is taking a step to make bridging your life between your phone and PC a little easier, at least for Android users. One browser that has been conspicuously missing from Android and iOS devices - whether you care or not - is Microsoft Edge.
    Turkey must take 'own measures' in Idlib: Erdogan

    Turkey must take 'own measures' in Idlib: Erdogan

    The Turkish military activity in Idlib aims at establishing a "de-escalation zone" in the region, the written statement said. Turkish news media reported that the vehicles carrying the troops crossed into Idlib province late on Thursday.