Mergers and acquisitions activity picks up benefiting Wall Street, Bank of America Corp's third quarter performance exceeds expectations.

Bank of America Corp (BAC.US) reported third-quarter results that exceeded expectations, driven by a long-awaited resurgence in mergers and acquisitions activity which boosted investment banking business, and net interest income higher than analyst forecasts. The financial report shows that Bank of America Corp's third-quarter revenue was $28.09 billion, an 11.0% increase year-over-year, with earnings per share of $1.06, higher than market expectations. Revenue from investment banking increased by 43% to $2.05 billion, surpassing analyst expectations of $1.65 billion. Mergers and acquisitions advisory fees surged by 51% to $583 million, while equity and debt issuance business revenue grew by 34% and 42% respectively. Key revenue source for Bank of America Corp, net interest income, increased by 9.1% to $15.2 billion. Analysts had previously expected this income (i.e. interest income from loans subtracted by interest expenses on deposits) to increase by 7.6%. "Our strong loan and deposit growth, combined with effective balance sheet management, resulted in record net interest income," CEO Brian Moynihan stated in the announcement on Wednesday. "Our markets business also delivered strong fee income performance." Bank of America Corp's net profit for the three months ending in September jumped by 23% to $8.47 billion. The bank's financial report provides a new perspective on the performance of large U.S. banks in the second quarter of Trump's presidency. Investors are also eagerly seeking details about the national economy from bank executives who serve a large number of American consumers and businesses. After market activity was suppressed earlier this year due to trade uncertainties, a wave of corporate acquisitions is now boosting Wall Street trading business. Data shows that, driven by multiple high-profile transactions, global third-quarter trading volume surpassed $1 trillion, marking the second occurrence of this record. On Tuesday, Morgan Stanley, Goldman Sachs Group, Inc., and Citigroup Group all announced third-quarter results which showed that strong trading and investment banking business boosted profits. Bank executives expect trading momentum to continue, and investment banking pipeline to remain strong. Bank of America Corp's stock price rose by 4% in pre-market trading. As of Tuesday, the stock had risen by 14% year-to-date, exceeding the 10% increase in the S&P 500 Financials Index. Benefiting from a 14% growth in equity business to $2.27 billion, the bank's trading business also exceeded expectations. Fixed income revenue increased by 4.6% to $3.08 billion. Trading volumes remained stable in the third quarter as investors adjusted their positions around President Trump's fluctuating tariff policies and political changes at GEO Group Inc.