Bank of America profit falls to 6.9 billion dollars
Bank of America’s third-quarter profit fell from 8.3 billion dollars to 6.9 billion dollars after a regulatory settlement charge. Higher net interest income supported revenue, but investment banking and trading weakened. Deposits and loans increased. The bank also supplied adjusted earnings excluding the charge, alongside the standard accounting result, allowing the settlement’s effect to be identified.
Economics & Markets··Morning
Settlement charge reduces quarterly earnings
Bank of America reported lower third-quarter earnings after a 1.2 billion dollar regulatory settlement charge. Bank of America released its quarterly results on October 14.[1], [2]
Net income declined from 8.3 billion dollars a year earlier to 6.9 billion dollars. Earnings per share fell from 1.04 dollars to 0.91 dollars. Excluding the settlement charge, Bank of America calculated adjusted net income of 8.1 billion dollars. Those adjusted measures accompany the standard accounting results.[1]
Interest income grows while trading weakens
Revenue increased 3 per cent to 30.0 billion dollars. Net interest income rose 8 per cent to 16.4 billion dollars. Investment-banking fees fell 11 per cent to 1.8 billion dollars, and sales and trading revenue declined 5 per cent to 5.1 billion dollars. Fixed-income, currencies and commodities revenue fell 17 per cent, while equity trading revenue increased 11 per cent.[1]
Loans and deposits expand
Average deposits increased 2 per cent to 2.02 trillion dollars and average loans rose 6 per cent to 1.23 trillion dollars. The provision for credit losses was 1.3 billion dollars. Consumer customers’ credit- and debit-card spending grew 8 per cent to 266 billion dollars.[1]
