UPDATE 2-Consumer banking powers BofA profit beat

From Reuters - October 13, 2017

(Reuters) - Bank of America Corps (BAC.N) profit surged 15 percent in the third quarter as higher U.S. interest rates boosted income from consumer banking and the lender also met its own target on cost control.

Shares of the No.2 U.S. bank by assets rose about 1 percent in premarket trade on Friday.

Revenue rose across three of BofAs four main businesses, with consumer banking up 10 percent. Global markets business revenue fell due to weak trading that is hurting the entire sector.

The bank also kept a tight leash on costs. Its efficiency ratio, which measures expenses as a percentage of revenues, came in at 60 percent - in line with managements long-term target.

Revenue across our four lines of business grew 4 percent, even with a challenging comparable quarter for trading, Chief Executive Officer Brian Moynihan said.

Benefiting from higher Federal Reserve interest rates, the lenders net interest income rose 9.4 percent to $11.16 billion. The Fed is widely expected to raise rates again in December.


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