Laying Off Employees, U.K. Clusterf*ck Did Wonders For Bank Of America's Third Quarter Earnings

Remember over the summer, when Britain lost its mind and decided to leave the European Union? Or last spring, when Bank of America consciously uncoupled with a large chunk of employees? Both events weren't so great for the people they were happening to but for BofA with regard to turning a profit? Let's just say they were a rare bright spot in CEO Brian Moynihan's otherwise miserable time at the bank.

Bank of America Corp, the second-largest U.S. bank by assets, reported its first profit increase in three quarters on Monday, foiling expectations for another drop, as bond trading surged and expenses fell. Like rivals JPMorgan and Citigroup, Bank of America enjoyed a boost from a resurgence in trading. That came as clients scrambled to reposition after Britain's surprise June vote to leave the European Union, and changing expectations for monetary policy in the United States, Europe and Japan. Chief Executive Brian Moynihan's cost-cutting campaign also paid off as expenses fell in each of its four major business segments. On a pretax basis, quarterly profit was at its highest in a decade. Net income attributable to shareholders rose 6.6 percent to $4.45 billion in the third quarter ended Sept. 30 from a year ago. Earnings per share rose to 41 cents, from 38 cents in the same period of 2015. Analysts, on average, had estimated a decline to 34 cents a share.

Bank of America profit rises on bond trading, cost cuts [Reuters]