Bank of America Stronger-than-expected interest income topped estimates for third-quarter profit on Tuesday.

Here’s what the company announced:

• Earnings per share: 90 cents vs. 82 cents expected from LSEG, formerly Refinitiv
• Revenue: $25.32 billion, vs. $25.14 billion expected

Profit rose 10% to $7.8 billion, or 90 cents per share, from $7.1 billion, or 81 cents per share, a year ago, the Charlotte, North Carolina-based bank said in a statement. liberation. Revenue rose 2.9% to $25.32 billion, beating LSEG estimates.

Bank of America’s interest income rose 4% to $14.4 billion, roughly $300 million more than analysts expected, driven by higher rates and loan growth.

CEO Brian Moynihan said the bank continued to add customers despite economic pressures. While consumer banking deposits fell 8% in the quarter, the segment grew 6% in revenue to $10.5 billion, the company said.

“We did this in a healthy but sluggish economy that saw U.S. consumer spending still higher than last year, but continuing to slow,” he said in the earnings release.

Bank of America should be one of the biggest beneficiaries of higher interest rates this year. Instead, the company’s stock was the worst performer among its big-bank peers in 2023. That’s because, under CEO Brian Moynihan, the lender piled on low-yielding, long-dated bonds during the pandemic. Those bonds lost value as interest rates rose.

That makes Bank of America more sensitive than its peers to 10-year Treasury yields — and similar to some regional banks that maintain underwater bonds. Bank of America had paper losses on more than $100 billion in bonds Mid year.

The situation has pressured the bank’s net interest income, or NII, a key metric that analysts watch this quarter. In July, the bank’s CFO, Alistair Borthwick, confirmed earlier guidance that NII would be around $57 billion by 2023.

Shares of Bank of America rose about 1% in premarket trading on Tuesday. The stock has slumped 18% this year through Monday, trailing rival JPMorgan Chase’s 10% gain.

Last week, JP Morgan, Wells Fargo and Citigroup each topped expectations for third-quarter profit, helped by better-than-expected debt costs. Morgan Stanley The results will be released on Wednesday.

This story is developing. Check back for updates.