Bank of America Earnings Jump to $2.5 Billion

Bank of America (NYSE: BAC  ) today reported net income of $2.5 billion in the third quarter of 2013, giving it an earnings per share of $0.20, big leaps from the third quarter of 2012, when it reported income of $340 million, or $0.00 per share, which was driven lower by litigation charges and valuation adjustments.

Bank of America highlighted that the improvements were attributable to increased net interest income, a reduction in credit valuation adjustments, increases in its equity investment income and its investment and brokerage income. In addition, the company noted that improvements in credit quality and a reduction in expenses helped drive positive results.

Excluding certain items, Bank of America watched its revenue fall from $22.5 billion in the third quarter of 2012 to $22.2 billion in the third quarter of this year, driven primarily by lower mortgage banking revenue, which fell from $2.0 billion to $600 million. Its noninterest expenses fell dramatically from $17.5 billion to $16.4 billion.

The bank also saw a significant reduction in its provision for credit losses (what it anticipates it may lose on outstanding loans) -- falling from $1.5 billion in the third quarter of last year to $296 million in the third quarter of this year. In the second quarter of 2013 that amount stood at $915 million.

Of the results, Brian Moynihan, Bank of America CEO, said in a statement: "This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us. The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that." 

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2685698, ~/Articles/ArticleHandler.aspx, 10/1/2016 6:23:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:00 PM
BAC $15.65 Up +0.49 +3.23%
Bank of America CAPS Rating: ****