Bank of America reported third-quarter earnings on Monday and beat on both the top and bottom line, making it the first profit increase in three quarters.
The company reported earnings of 41 cents a share for Q3, and revenue of $21.64 billion. The bank showed a profit of $4.45 billion, whch is a 6.6% increase from a year ago.
According to a consensus estimate from Thomson Reuters, Wall Street analysts had expected Bank of America to report earnings of 34 cents a share on revenue of $20.96 billion.
“Strong client activity and good expense discipline combined to drive positive operating leverage as we continue to optimize and strengthen our balance sheet. With near-record levels of capital and liquidity, as well as robust underwriting standards, Bank of America is stronger, safer and better prepared to deliver for customers and clients than probably at any time in our history,” Chief Financial Officer Paul M. Donofrio said in the earnings release.
“We remain focused on delivering long-term value to shareholders,” he said.
“This quarter, we increased tangible book value per share by 11 percent while returning nearly $2.2 billion in capital to common shareholders.”
Shares rose more than 1.5 percent in premarket trade following the earnings release.
Disclaimer: We have no position in Bank of America Corp (NYSE: BAC) and have not been compensated for this article.