Bank of America has reported a stellar third quarter with net income up 13% year-on-year to $5.6bn, its best quarterly performance for six years.
Bank of America’s retail banking division performed particularly strongly with consumer banking highlights including:
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- Revenue rose 10% to $8.8bn;
- Loans up 8%; deposits up 9%;
- Merrill Edge brokerage assets up 21%;
- Mobile banking active users increased 11% year-on-year to 23.6 million, and
- Credit/debit spend up 7% to $137bn
In addition to the impressive rise in active mobile banking users, digital highlights included digital sales growing to 22% of all Consumer Banking sales.
Mobile channel usage rose by 19% to 1.2 billion interactions while the bank’s P2P Zelle service attracted 13.6 million person-to-person payments up 68%.
About the only negative consumer banking metric was an increase of $100m to $800, in credit card provisions compared to the prior quarter.
Brian Moynihan, CEO, said: “Our focus on responsible growth and improving the way we serve customers and clients produced another quarter of strong results. Revenue across our four lines of business grew 4% even with a challenging comparable quarter for trading.
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By GlobalData“We delivered positive operating leverage year over year for the 11th consecutive quarter while continuing to invest in improved capabilities.
Digital activity with customers continues to shape the way we provide products and services to customers, with the most recent example being Zelle, our new person-to-person payment capability.”
