- Bank of America (BAC) reported a profit of $6.2 billion, or $0.56 per share.
- Revenues were up 6% at $28.8 billion.
- Analysts expected an EPS of 20 cents per share on revenues of $25.95 billion
NEW YORK ( TheStreet) -- Bank of America earned $6.2 billion, or 56 cents per share in the third quarter, handily beating analyst estimates, though the results got a boost from several unusual one-off items.
This quarter's profit compared with a loss of $7.3 billion, or 77 cents per share a year ago. Revenues rose six percent to $28.7 billion.
The results topped analyst expectations of a 20 cent gain on revenues of $25.95 billion.Revenues declined in several divisions, most notably in investment banking, called global banking and markets. That business saw revenues fall to $5.22 from more than $7 billion a year ago and $6.80 billion in the second quarter. Deposits increased by $11 billion to $422 billion, but were down from $427 billion in the last quarter. Card services revenue fell to $4.5 billion from $5.4 billion a year ago and $4.9 billion in the second quarter. Wealth management revenues rose to $4.23 billion from $3.90 billion but were down from $4.50 billion last quarter. Consumer banking and commercial banking posted revenues of $2.82 billion and $2.53 billion, respectively, both down from last year. Revenues in a bucket dubbed "All Other," were $6.27 billion, sharply higher than in past periods. Last year that catch-all category produced $1.24 billion in revenues. A quarter ago, it was $2.59 billion. The source of these revenues appeared to come from several "one time" items such as $4.5 billion in positive fair value adjustments on structured liabilities, a gain of $3.6 billion from the sale of shares of China Construction Bank (CCB), $1.7 billion pretax gain in trading Debit Valuation Adjustments (DVA), and a pretax loss of $2.2 billion related to private equity and strategic investments, excluding CCB. "This quarter's results reflect several actions we took that highlight our ongoing transformation toward becoming a leaner, more focused company," said Chief Executive Officer Brian Moynihan. "The diversity and depth in our customer and client offerings provided some resiliency in a very challenging environment." -- Written by Dan Freed in New York.
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