Bank of America Increase Mortgage Banking
Luke Osborne November 14, 2016
Bank of America net income came in at $5 billion, or $0.41 per diluted common share in the third quarter.
This is an increase from the second quarter’s $0.36 per share and better than the Capital IQ consensus estimate of $0.34 per share.
Net interest income also increased by 3% to $10.2 billion, up from $9.9 billion last year.
Total noninterest expenses decreased 3% from last year to $13.5 billion, driven in part by improvements in mortgage servicing costs.
Total mortgage production is up from last year by $3.6 billion to $20.4 billion. In fact, mortgage banking income increased to $297 million, up from $267 million last quarter and $290 million last year.
However, other media reports put the earnings surge down to rising income from fixed securities trading, primarily in the bond market.
Earlier this year, the bank failed its annual stress test.
How does this compare to other bank’s earnings so far this quarter? Here are the reports from Wells Fargo and JPMorgan Chase, which also beat expectations this quarter, and from Citigroup, which fell short.