Bank of America’s (BAC) Q3 profits beat forecast, deposits up 15%  

October 14, 2021 09:24 AM PDT | By Sanjeeb Baruah
Follow us on Google News:


  • BAC’s third-quarter revenue increased by 12% to US$22.8 billion.

  • The net income increased to US$7.26 billion, or 85 cents per share.

  • The average deposits were up US$247 billion, or 15%, to US$1.9 trillion.

Bank of America Corporation (NYSE: BAC) on Thursday reported strong third-quarter performance, boosted by robust merger and acquisition activities and growth in loan and lease segments.

The company said that these activities, along with higher spending on credit and debit cards and strong equity trading, lifted its performance and helped register a 64% increase in earnings.

The bank’s net interest income, a key metric that shows lending income, rose nearly 10% to US$11.09 billion. Loans, excluding government-backed credits and stimulus paychecks, and lease segments saw a 2.3% growth in the third quarter from Q2, but down 4.3% on a YoY basis.

BAC’s chief financial officer Paul Donofrio said that the company saw significant growth in every loan segment besides increased card transactions.

CEO Brian Moynihan said the economy regained its organic customer growth momentum comparable to the pre-pandemic levels during the quarter. In addition, strong deposit growth and loan balances helped improve its net interest income, although the rates were low, Moynihan added.

Moynihan said the bank returned nearly US$12 billion in capital to shareholders due to record investment banking activities boosted by commercial loan balances.

Also Read: Taiwan chipmaker TSMC's Q3 net profit jumps 13.8% on global demand

BOA’s net income rose to US$7.26 billion, or 85 cents per share, in Q3, 2021.

Source: Pixabay

Also Read: UnitedHealth (UNH) raises guidance on strong Q3 growth, revenue up 11%

BAC’s third-quarter performance

BAC’s third-quarter revenue increased by 12% to US$22.8 billion. The net income increased to US$7.26 billion, or 85 cents per share, from US$4.44 billion, or 51 cents per share, a year ago.

Analysts had forecast a profit of 71 cents per share, the Refinitiv data showed. Also, BAC’s net interest income increased by 10% to US$11.1 billion, driven by strong deposit growth. The average deposits were up US$247 billion, or 15%, to US$1.9 trillion.

The company said that its credit losses improved by US$2.0 billion to benefit US$624 million. In addition, average loan and lease balances increased by US$14 billion QoQ to US$903 billion.

The combined credit and debit card spending jumped 21% to US$201 billion in the quarter. Revenue from the equities division increased by 33% YoY. Also, the bank released US$1.1 billion in reserves kept aside to cover possible loan defaults in the wake of the pandemic.

Bank of America is the second-largest US bank by assets and provides a range of banking and investing services. It serves customers in around 35 countries, including the US.

The BAC stock was up 2.25% to US$44.11 at 9:35 am ET on Thursday.

Also Read: Datadog (DDOG) shakes off inflation worries, posts solid YTD gains


The financial sector saw a strong comeback this year, lifted by robust deposits and merger and acquisition activities. Besides, government loans and covid-era paychecks to people helped maintain growth. However, investors should exercise due diligence before investing in stocks.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies