Bank of America's third-quarter numbers top forecasts

The bank reported a 7% jump in third-quarter net income to $5bn and earnings per share of $0.41, up from $0.38 in the same period a year earlier.

Revenue rose 3% to $21.6bn and pre-tax earnings were up 17% to $7.3bn.

Analysts had expected the bank to post earnings of $0.34 a share and revenue of just under $21bn.

Sales and trading revenue was up 14%, with fixed income trading revenue 32% higher and equities revenue down 17%.

Meanwhile, non-interest expenses declined 3% to $13.5bn, driven by improved operating efficiencies and lower fraud costs, partially offset by higher Federal Insurance Corporation expense.

Chief executive officer Brian Moynihan said: “We delivered strong results this quarter by staying true to our strategy of responsible growth and focusing on the quality of the relationships with our customers and clients. We grew revenue, reduced expenses and continued to manage risk, resulting in a 17% increase in pre-tax earnings.

“Our investments in innovation, including industry-leading digital banking capabilities, continue to transform how we serve our customers. This innovation across our businesses is benefiting customers and shareholders.”

At 1211 BST, the shares were up 1.3% in pre-market trade to $16.20.