Bank of America had a pretty good quarter! They beat what experts expected by making more in profit and revenue. Here are the stats they shared:
Earnings: 81 cents, while analysts said 77 cents
Revenue: $25.49 billion, just over the $25.3 billion guess

But the story isn't all sunshine and rainbows. Net income dropped by 12% from last year, reaching $6.9 billion. Why? Higher loan loss provisions and increased expenses.

Revenue did go up a bit, about 1%, thanks to gains in trading, asset management, and investment banking fees. Sadly, net interest income dipped by 2.9%, coming in at $14.1 billion.

Fixed income trading did well, rising 8% to $2.9 billion, largely due to strength in currencies and interest rate activity. Equities trading saw an 18% jump to $2 billion, helped by higher cash and derivative volumes.

Investment banking fees also climbed 18% to $1.40 billion. And the bank set aside $1.5 billion for potential loan losses, which was just a tad less than the $1.57 billion estimate.

Bank shares jumped 2.7% before the market opened. Net interest income fell, but it was better than the previous quarter, showing some improvement. Banks like Bank of America make money from net interest income, which is the difference between what they earn on loans and investments, and what they pay to depositors.

Other big banks like JPMorgan Chase and Wells Fargo also reported better-than-expected results, helped by their investment banking businesses.

More updates might come as other banks like Goldman Sachs, Citigroup, and Morgan Stanley report earnings soon. Stay tuned!

Bank of America's Third Quarter: Profit & Trading Ups, Loan Losses Up

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