Bank of America earnings beat Street forecasts, but bond losses jump amid Treasury rout

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Big gains in net interest income powered solid third quarter earnings for Bank of America, but investors are likely to focus on unrealized losses in its bond portfolio and Treasury yields continue to rise.

posted better-than-expected third quarter earnings Tuesday, thanks to solid gains in net interest income from its lending business, but noted a big jump in unrealized losses in its bond portfolio.

Net interest income, a key measure of bank profitability, rose 4% to $14.4 billion, the bank said, while investment banking fees, Bank of America said, rose 2% to $1.2 billion. Consumer banking revenues, by far the larger portion of the lender's top line, rose 6% to $10.5 billion, while its overall deposit base was pegged at $9.1 trillion.

“Our teammates delivered another strong quarter. We generated $7.8 billion in earnings, up 10 percent from the third quarter a year ago. We added clients and accounts across all lines of business," said CEO Brian Moynihan.

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