Bank of America (BAC +0.00%) 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."
