Bank of America today said third-quarter profit rose 31 per cent, topping analyst estimates, as mortgage banking income tripled and deposits grew.
The third-largest bank in the United States also set aside $100 million to pay for regulatory investigations into its Nations Funds mutual fund business.
Charlotte, North Carolina-based Bank of America said net income rose to $2.92 billion, or $1.92 per share, from $2.24 billion, or $1.45 per share, a year earlier. Revenue rose 14 per cent to $9.92 billion, it said.
Shares of Bank of America rose to $82.80 on the Instinet electronic brokerage system from a close of $81.74 on the New York Stock Exchange yesterday.
Chairman and Chief Executive Kenneth Lewis said the bank is doing better at adding and retaining customers. The bank said its major businesses all "significantly increased" profit.
Bank of America said consumer and commercial banking income rose 28 per cent to $2.15 billion, as mortgage banking income rose 203 per cent to $666 million and credit card income rose 16 per cent to $794 million.
Investment banking income rose 33 per cent to $513 million, and asset management income rose 95 per cent to $123 million, it said.