Bank of America’s Q3 Profit Soars 23% to $8.5 Billion, Topping Forecasts

- Bank of America posts $8.5 billion Q3 profit, up 23% YoY. - Investment banking and trading revenue drive forecast-beating results. On October 15, 2025, Reuters reported that Bank of America smashed profit expectations for the third quarter, delivering $8.5 billion in earnings, a 23% year-over-year increase. Gains in investment banking and trading outperformed projections, driving this result. The bank’s earnings of $1.06 per share surpassed the 95 cents per share that analysts had anticipated, while total revenue reached $28.24 billion, up 10.8% from the previous year and also exceeding market forecasts. Robust growth across core business segments fueled the stellar performance. Investment banking fees soared 43% to $2 billion, while trading revenues posted significant increases. Equities trading revenue rose 14% to $2.3 billion, and fixed income trading generated $3.1 billion, marking a 5% year-over-year rise. Additionally, net interest income—the gap between interest earned on loans and interest paid on deposits—climbed 9% to $15.39 billion. Improvements in credit quality also bolstered the quarter’s results, as provisions for credit losses dropped 13% to $1.3 billion. This decline reflects healthier borrower profiles and reduces the bank’s need to reserve funds for potential loan defaults. Investor sentiment surged following the earnings announcement, pushing Bank of America’s stock up 6.8% at the market's open. The results align with broader trends in the financial sector, as other institutions like JPMorgan Chase and Goldman Sachs similarly reported strong trading gains during the quarter.