BofA profit rises on higher rates, lower costs

(Reuters) - Bank of America Corp <BAC.N>, the second-largest U.S. bank by assets, reported a 15 percent rise in quarterly profit as the lender kept a tight leash on costs and benefited from higher interest rates.

BofA's shares rose about 1 percent in premarket trade.

The bank's net income attributable to common shareholders rose to $5.12 billion for third quarter ended Sept. 30 from $4.45 billion in the year-ago period. Earnings per share rose to 48 cents from 41 cents. (http://bit.ly/2hDYUZK)

Analysts on average had expected earnings of 45 cents per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported results were comparable.

Benefiting from higher Federal Reserve interest rates, the lender's net interest income rose 9.4 percent to $11.16 billion. The Fed is widely expected to raise rates again in December.

BofA's large stock of deposits and rate-sensitive mortgage securities make the lender particularly dependent on a rise in interest rates to boost profits.

Trading revenue fell 15 percent, with revenue from fixed income trading down 22 percent. JPMorgan <JPM.N> and Citigroup <C.N> also reported declines in trading revenue on Thursday due to a slump in volatility.

BofA's non-interest expenses fell 2.5 percent to $13.14 billion. Total revenue rose about 1 percent to $22.08 billion.

(Reporting by Nikhil Subba and Sweta Singh in Bengaluru and Dan Freed in New York; editing by Saumyadeb Chakrabarty)

10/13/2017 7:16

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