Net income climbed to $7.3 billion, the Charlotte-based bank said Tuesday in a press release.
Earnings per share were 70 cents, beating analysts' average estimate of 66 cents.
Revenue totaled $23 billion, roughly flat with the year-earlier level, but the bank cut non-interest expenses by 4% to $13.2 billion.
"It was a challenging capital-markets environment but our team and platform are optimized," CEO Brian Moynihan said in the press release.
Stock-trading revenue tumbled 22% to $1.2 billion, while fees and trading profits from bonds, commodities and foreign exchange declined by 8% to $2.4 billion.
Jim Cramer weighed in on what he expects from Morgan Stanley's (MS) - Get Report earnings and his general thoughts on the banking sector after some of the major banks--including JPMorgan (JPM) - Get Report , Goldman Sachs (GS) - Get Report and Citigroup (C) - Get Report .