Investment Banking

Bank of America’s profits surge but investment bank splutters

Lower tax bill flatters a banking and trading division that saw big revenue falls in M&A and debt underwriting

Bank of America has continued a strong reporting season for Wall Street banks by posting a 32% increase in profits for the third quarter, even as its investment banking business continued to underperform.

The US bank on Monday reported revenues of $22.8bn for the period, up by 4% year-on-year. Net profits hit $7.2bn as the bank benefited from US tax cuts and rising interest rates in the country.

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