(Reuters) – Bank of America saw its profit rise 10% in the third quarter, amid high borrowing costs, like its rivals, and as its investment banking and markets businesses performed better provided that.
The second largest American bank published on Tuesday a net profit of 7.27 billion dollars (6.89 billion euros), or 91 cents per share, for the quarter which ended September 30. It was $6.58 billion, or 81 cents per share, a year earlier.
The bank’s investment and trading branches did better than expected, posting rising revenues, going against the trend of the rest of the industry.
Bank of America’s net interest income rose 4% in the third quarter to $14.4 billion, reflecting an industry trend. Lenders have seen interest income rise as a result of higher borrowing costs implemented by the Federal Reserve to combat inflation.
Credit giants JPMorgan Chase, Citigroup and Wells Fargo also reported a rise in net interest income and raised their forecasts for this key metric.
(Reporting Manya Saini, Nupur Ananad and Saeed Azhar; French version Victor Goury-Laffont, editing by Kate Entringer)
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