This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Earnings Boosted by One-Offs (Update 1)

  • Bank of America (BAC - Get Report) 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.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.02 -0.81%
AAPL $92.85 -0.82%
FB $117.85 -0.18%
GOOG $698.98 0.47%
TSLA $211.67 -4.90%


Chart of I:DJI
DOW 17,624.38 -26.88 -0.15%
S&P 500 2,048.17 -2.95 -0.14%
NASDAQ 4,714.5420 -11.0970 -0.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs