Loan growth, trading boost Bank of America profits

Bank of America reported higher third-quarter profits Monday behind strong performance in trading and overall loan growth.

Net income rose in all four of Bank of America's operating divisions, with the consumer banking business boosted by increased mortgage production and global markets lifted by strong performance in fixed income, currencies and commodities trading.

Large US banks have responded to the low interest rate environment by cutting expenses, which fell 3.2 percent to $13.5 billion. Banks have also benefited from moderate, but steady, growth in the US economy.

"Strong client activity and good expense discipline combined to drive positive operating leverage as we continue to optimize and strengthen our balance sheet," said Chief financial officer Paul Donofrio.

Net profit rose 6.6 percent to $4.5 billion.

Revenues increased 3.1 percent to $21.6 billion.

Profits translated into 41 cents per share, eight cents above analyst expectations.

Shares of Bank of America rose 0.6 percent to $16.10 in pre-market trade.