Bank of America reported third-quarter results on Friday that beat Wall Street expectations despite a slowdown in its fixed-income trading business.
Here’s how the company’s results fared against Wall Street expectations:
- EPS: 48 cents vs 45 cents forecast by Thomson Reuters
- Revenue: $22.079 billion vs $21.976 billion
The company’s stock rose nearly 1 percent in the premarket following the release of the results.
The bank also said, however, its fixed-income trading revenue fell 22 on a year-over-year basis. Third-quarter fixed-income revenue totaled $2.152 billion versus $2.646 billion in the year-earlier period.
JPMorgan Chase and Citigroup also reported sharp declines in quarterly fixed-income trading on Thursday.
Shares of Bank of America have risen nearly 16 percent this year, slightly outperforming the S&P 500 index.
Analysts at Credit Suisse think the stock, along with that of other banking giants, could benefit from potential tax cuts and “progress on regulatory reform.”
“We’ll continue to assess valuations cognizant of the economic cycle, but equally as willing to embrace the changing operating environment, inclusive of the improved prospects for regulatory reform,” analyst Susan Roth Katzke said in a note to clients.
Last week, the Treasury Department released a white paper in which it recommends easing banking regulations.
Later Friday morning,