BofA earnings beat expectations thanks to high-interest rates and volatile markets

Bank of America said Monday, October 17th, that earnings and earnings beat expectations for fixed income earnings and interest earnings in the third quarter, thanks to volatile markets and higher interest rates.

The bank said its third-quarter profit fell 8% to $7.1 billion, or 81 cents a share, as the company booked $738 million in provision for credit losses this quarter.

Net income from interest expense jumped to $24.61 billion.

The bank, led by CEO Brian Moynihan, was supposed to be one of the main beneficiaries of the Fed’s rate hike.

But banking stocks have been hit hard this year amid fears of a recession on the way, and Bank of America didn’t deliver, hitting a 52-week low Thursday, November 13th.

The bank’s shares rose 2.9% in trading before the beginning of Monday’s session.