$Bank of America (BAC.US)$ Q3 performance exceeded expectations, benefiting from the gains in volatile markets, as well as net interest income that exceeded analysts' expectations. Despite the decline in net interest income, third-quarter revenue increased by less than 1%, reaching $25.49 billion, exceeding the market's expected $25.3 billion. Bank of America's net income in the third quarter decreased by 12% compared to the same period last year, to $6.9 billion, or 81 cents per share, partially due to increased loan loss reserves and expenses.

The financial report shows that with the growth in trading income, asset management, and investment banking fees, Bank of America's equity and fixed income, foreign exchange, and commodity trading revenue increased by 12% in the third quarter to $4.93 billion. Fixed-income trading revenue grew by 8% to $2.9 billion, while stock trading revenue increased by 18% to $2 billion. Investment banking business revenue increased by 15%, costs rose by 18% to $1.4 billion, showing strong market demand for trading activities.

Brian Moynihan, CEO of Bank of America, emphasized that the company benefited from year-on-year growth in investment banking and asset management fees, as well as sales and trading revenue. Although mergers and acquisitions consulting fees declined by 14%, stock and bond issuance revenues increased by 16% and 37% respectively.

Bank of America's credit loss provisions were $1.5 billion, slightly below the expected $1.57 billion. Net interest income, as one of the bank's main sources of income, decreased by 2.9% to nearly $14 billion, better than the analysts' expected 3.4% decline. Part of this decrease in this indicator is due to the Fed's interest rate hikes over the past two years.

At the end of the third quarter, the bank's loan balance increased to $1.08 trillion, up 2.5% from the same period last year, higher than the analysts' estimated $1.07 trillion. Bank of America's non-interest expenses increased by 4% to nearly $16.5 billion, mainly due to revenue-related expenses and increased investments in employees and technology, while analysts had previously expected this figure to increase by 4.1%.

It is understood that Bank of America's performance reflects the situation of American consumers and businesses amidst the Fed's first rate cut in nearly five years. Despite geopolitical tensions and uncertainty surrounding the U.S. elections, the bank's balance sheet remained resilient. As of the time of drafting, Bank of America's pre-market trading rose by nearly 2% to $42.63.

It is worth mentioning that last week, JPMorgan and Wells Fargo & Co announced that their latest financial reports exceeded expectations, with executives pointing out that the sharp rise in investment banking and trading businesses was the key to performance improvement. In addition, Goldman Sachs' third-quarter profit surged by 45%, driven by unexpected growth in stock trading revenue and a recovery in investment banking business. The company's stock traders recorded their best quarter in over three years, poised to be the best year ever, with commissions for the traders exceeding expectations in every key business area.

Across Wall Street, major banks are indicating their ability to withstand the adverse impact of interest rate cuts on retail trade while highlighting the potential increase in trading commissions, which will drive up fees for the entire industry.