Bank of America has today reported a better-than-expected rise in quarterly profit as the second-largest US lender reined in costs, while higher interest rates and loan growth helped offset lower bond trading revenue.
Like its peers, the bank has benefited from US President Donald Trump's tax cuts and a rise in interest rates.
A strong US job market has also kept bad loans in check and borrowing healthy.
Bank of America relies heavily on higher interest rates to maximsze profits as it has a large deposit pool and rate-sensitive mortgage securities.
Total interest income - the difference between what a lender earns on loans and pays on deposits - rose 6.4% to $11.87 billion. Total deposits rose nearly 5% to $1.35 trillion.
"Responsible growth, backed by a solid US economy and a healthy US consumer, combined to deliver the highest quarterly pre-tax earnings in our company's history," chief executive Brian Moynihan said in a statement.
The bank said that its net income applicable to common shareholders rose 35% to $6.7 billion in the third quarter ended September 30.
Excluding items, the bank earned 67 cents per share, beating the average analyst estimate of 62 cents per share, according to I/B/E/S data from Refinitiv.
Non-interest expense fell 2.4% to $13.07 billion.
