In what is quickly becoming a trend for major American banks, CNBC reports that:
Bank of America reported third-quarter results on Friday that beat Wall Street expectations despite a slowdown in its fixed-income trading business.
This is similar to what happened yesterday with Citigroup, as both reported negative trading numbers but were boosted by strong banking fundamentals. Business Insider reports:
- “Net interest income (NII): $11.4 billion, a 10% increase from last year and beating analyst estimates of $11.3 billion.
- Consumer banking revenues increased 10% to $8.8 billion.
- Wealth management revenues increased 6% to $4.6 billion.
- Global banking revenues increased 5% to $5 billion.
- Investment banking fees increased 1% to $1.5 billion, the best third-quarter performance since Bank of America acquired Merrill Lynch.”
Despite slower trading because of low volatility, major banks have shown their resiliency and blue chip strength and rallied during the stable bull market. While the numbers may not be explosive, the show strong underlying signs of growth.
“Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results,” CEO Brian Moynihan said in a statement.
Aside from the strong banking fundamentals, CNBC reports that:
Last week, the Treasury Department released a white paper in which it recommends easing banking regulations.
Such a change coupled with changing tax laws could be a huge boon to the banking sector going forward. Major financial institutions could be on the rise going forward, as Bank of America marks yet another example of blue chip bank going into the green at earnings. Investors should give the sector a good hard look, it may just be a solid investment to make for the future.
To read CNBC’s article on Bank of America’s earnings, click here.
To read Business Insider’s article on Bank of America’s Earnings, click here.
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