Bank of America beat analysts' estimates for quarterly profit as gains from trading in stocks

Bank of America posted stronger-than-expected third quarter earnings Wednesday as revenues from its investment banking business, as well as a modest increase in net interest income, drove bottom line gains. 

The firm said net income excluding an impairment charge rose 4% to $7.5 billion, or an adjusted 75 cents a share. When including the $2.1 billion charge tied to the end of a partnership with First Data, net income fell to 56 cents a share, exceeding the 51 cent estimate of analysts surveyed by Refinitiv.

"In a moderately growing economy, we focused on driving those things that are controllable," Chief Executive Brian Moynihan said in a statement.

"Our teammates delivered another strong quarter of earnings and returns for shareholders. In a moderately growing economy, we focused on driving those things that are controllable," said CEO Brian Moynihan. "We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat."

Three of the bank’s four main divisions posted gains in revenue, led by its global banking business, which posted an 8% increase to $5.2 billion on higher investment banking fees. Citing a boost from hiring more bankers in a push for middle-market deals, the bank posted a 27% increase in IB fees to $1.5 billion, exceeding the $1.27 billion estimate.

Bank of America shares were marked 2.25% higher immediately following the earnings release to indicate an opening bell price of $30.40 each, a move that would extend the stock's year-to-date gain to around 23.4%.

Here’s what Wall Street expected:

- Earnings: 51 cents a share, down 23% from a year earlier, according to Refinitiv.
- Revenue: $22.79 billion, down 0.6% from a year earlier.
- Net Interest Margin: 2.39%, according to FactSet
- Trading Revenue: Fixed income $2.04 billion, Equities $1.09 billion

Revenue, net of interest expense, rose slightly to $22.96 billion. Analysts were expecting a profit of 51 cents per share and revenue of $22.79 billion, according to IBES data from Refinitiv.