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

Here’s what the company reported:

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

Profit rose 10% to $7.8 billion, or 90 cents per share, from $7.1 billion, or 81 cents a share, a year earlier, the Charlotte, North Carolina-based bank said in a release. Revenue climbed 2.9% to $25.32 billion, edging out the LSEG estimate.

Bank of America said interest income rose 4% to $14.4 billion, roughly $300 million more than analysts had anticipated, fueled by higher rates and loan growth.

Shares of Bank of America rose 1% in premarket trading.

CEO Brian Moynihan said the bank continued to add clients despite economic pressures. While consumer banking deposits were down 8% in the quarter, the segment posted a 6% increase in revenue to $10.5 billion, according to the company.

“We did this in a healthy but slowing economy that saw U.S. consumer spending still ahead of last year but continuing to slow,” he said in an earnings release.

Bank of America was supposed to be one of the biggest beneficiaries of higher interest rates this year. Instead, the company’s stock has been the worst performer among its big bank peers in 2023. That’s because, under Moynihan, the lender piled into low-yielding, long-dated securities during the Covid pandemic. Those securities lost value as interest rates climbed.

That’s made Bank of America more sensitive to the recent surge in the 10-year Treasury yield than its peers — and more similar to some regional banks that are also nursing underwater bonds. Bank of America had more than $100 billion in paper losses on bonds at midyear.

The situation has pressured the bank’s net interest income, or NII, which is a key metric that analysts will be watching this quarter. In July, the bank’s CFO, Alistair Borthwick, affirmed previous guidance that NII would be roughly $57 billion for 2023.  

Bank of America shares were up about 1% in premarket trading Tuesday. The stock had fallen 18% this year through Monday, trailing the 10% gain of rival JPMorgan Chase.

Last week, JPMorgan, Wells Fargo and Citigroup each topped expectations for third-quarter profit, helped by better-than-expected credit costs. Morgan Stanley is scheduled to post results Wednesday.  

This story is developing. Please check back for updates.