Why Shares of Bank of America Are Gaining Today
Shares of Bank of America (NYSE: BAC) were trading roughly 6% higher at 10:23 a.m. ET today after the bank reported earnings results for the third quarter of the year.
Bank of America reported diluted earnings per share of $0.81 on total revenue of $24.5 billion, both numbers that beat analyst estimates for the quarter.
One of the big stories in the quarter was net interest income (NII), which is the profit banks make on loans and bonds after covering the cost to fund those assets. Thanks to the higher-interest-rate environment, which is increasing the yields on many bank loans and bond holdings, NII for the quarter came in at $13.8 billion, $1.4 billion higher than the previous quarter. That blew away management's previous guidance for NII to rise by up to $1 billion from the second quarter.
Source Fool.com
