Bank of America, the second largest US bank by assets, reported its first profit increase in three quarters on Monday, foiling expectations for another drop as bond trading surged and expenses fell.

Like rivals JPMorgan and Citigroup, Bank of America enjoyed a boost from a resurgence in trading. That came as clients scrambled to reposition after Britain’s surprise June vote to leave the EU and changing expectations for monetary policy in the US, Europe and Japan.

Chief executive Brian Moynihan’s cost-cutting campaign also paid off as expenses fell in each of its four major business segments. On a pre-tax basis, quarterly profit was at its highest in a decade. Net income attributable to shareholders rose 6.6 per cent to $4.45 billion in the third quarter ended September 30th from a year ago. Earnings per share rose to 41 cent, from 38 cent in the same period of 2015. Analysts on average had estimated a decline to 34 cent a share.

Revenue grew 3 per cent to $21.64 billion, beating the $20.97 billion expected by analysts.

Global markets

Net profit in Bank of America’s trading-focused global markets arm jumped 34 per cent from a year earlier as revenue from dealing fixed-income securities, currencies and commodities surged 39 per cent. Equity trading revenue fell 17 per cent. Last week, JPMorgan reported a 48 per cent increase in bond trading and Citi posted a 35 per cent gain.

Like Bank of American, JMorgan, Citigroup and Wells Fargo beat third-quarter profit and revenue forecasts but their net earnings declined; JPMorgan Chase’s by 7.6 per cent, Citigroup’s by 10.5 per cent and Wells Fargo’s by 3.7 per cent.

Shares of Bank of America rose 1.07 per cent in premarket trading. Its stock has fallen 4.9 per cent since the start of the year, compared to a 2.5 per cent decline in the KBW banking index . – Reuters