Better-than-expected trading revenue leads to Bank of America surpassing estimates.

• Better-than-expected trading results helped Bank of America exceed analyst estimates for third-quarter profit and revenue.
• On Tuesday, the bank announced that its net income had decreased by 12% compared to the previous year, amounting to $6.9 billion, or 81 cents per share, due to increased provisions for loan losses and higher operating expenses.
• The net interest income decreased by 2.9% to $14.1 billion, slightly surpassing the predicted $14.06 billion.

topped analyst estimates for third-quarter profit and revenue on better-than-expected trading results.

Here's what the company reported:

• Earnings: 81 cents vs. 77 cents LSEG estimate
• Revenue: $25.49 billion vs. $25.3 billion estimate

On Tuesday, the bank announced that its net income had decreased by 12% compared to the previous year, amounting to $6.9 billion, or 81 cents per share, due to increased provisions for loan losses and higher operating expenses.

Despite a decline in net interest income, revenue increased by less than 1% to $25.49 billion, thanks to gains in trading revenue, asset management, and investment banking fees.

Shares of the bank ended the session up less than 1%.

Since 2010, Bank of America, led by CEO Brian Moynihan, has shown the benefits of being a large and diverse financial institution. Analysts have emphasized the bank's primary business of accepting deposits and lending to consumers and corporations as rising interest rates have reduced the bank's income from this activity.

The bank benefits from surging activity on Wall Street through its trading and advisory operations, just as rivals also do.

The revenue from fixed income trading increased by 8% to $2.9 billion, surpassing the $2.74 billion forecast by StreetAccount, due to the strength in currencies and interest rates. Additionally, equities trading revenue rose by 18% to $2 billion, exceeding the $1.81 billion StreetAccount estimate, as a result of higher cash and derivative volumes.

The investment banking fees increased by 18% to $1.40 billion, exceeding the $1.27 billion forecast from StreetAccount.

Although net interest income decreased by 2.9% from the previous year to $14.1 billion, it still surpassed the $14.06 billion forecast by StreetAccount.

The lender predicted in July that net interest income would increase in the second half of the year, as evidenced by the higher NII figure in the third quarter compared to the second quarter.

According to Wells Fargo analyst Mike Mayo, Bank of America appears to be turning the corner on NII inflection, but the degree is dependent on interest rates in the future.

The difference between a bank's earnings on loans and investments and the amount it pays depositors for their savings is known as NII, which is a crucial method for banks to generate income.

The bank's credit loss provision for the quarter was slightly below the estimated $1.57 billion.

On Friday, Wells Fargo reported earnings that exceeded expectations, thanks to their investment banking operations. Additionally, they reported results on Tuesday, and will disclose earnings on Wednesday.