Bank of America (BAC) says its third-quarter earnings jumped sharply, topping Wall Street expectations.
The nation’s second largest bank reported a profit of $2.5 billion during the quarter, compared to earnings of just $340 million during the same period last year. EPS came in at 20 cents. That surpassed the 19 cents that analysts had predicted, the Associated Press notes.
Higher loan quality and customers maintaining more money in their accounts helped the bank cut the amount of cash set aside to cover bad loans from $1.8 billion last year, to just $296 million during the third quarter.
While profits rose, third-quarter revenues sank from $22.5 billion last year, to $22.2 billion this year. The bank has been moving to streamline operations under CEO Brian Moynihan.
Last month, the bank said it would eliminate jobs and shutter some offices due to falling mortgage loan demand.
Higher Bank of America earnings sent its stock up more than 1% in Wednesday morning trading.