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Bank of America reports third-quarter earnings of $2.5 billion or $0.20 a share
Revenue came in at $21.7 billion
Analysts were expecting third-quarter EPS of $0.21 per share on revenue of $22 billion according to Bloomberg.
Bank of America earned $0.32 per share on revenues of $21.9 billion in the second quarter and $0.00 per share on revenues of $19.8 billion in the third quarter of 2012
Story updated with additional information throughout
NEW YORK (
Bank of America(BAC - Get Report) earned $2.5 billion or $0.20 per share in the third quarter on revenues of $21.7 billion.
Analysts surveyed by
Bloomberg had been looking for earnings of $0.21 per share on revenues of $22 billion. Bank of America earned $340 million, or $0.00 per share in the third quarter of 2012 and $4.01 billion, or $0.32 per share in the second quarter of 2013.
"The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that," said CEO Brian Moynihan.
Comparing the results to a year ago, Bank of America cited an accounting oddity known as credit valuation adjustments as well as "increases in equity investment income, net interest income and investment and brokerage income." Bank of America said it also "benefited from improved credit quality and lower expenses," but said those factors "were partially offset by lower mortgage banking income and the negative impact from remeasuring certain deferred tax assets due to the U.K. corporate income tax rate reduction enacted in July 2013."
Bank of America saw improved revenues and profits, both versus the previous quarter and a year ago, in its Consumer and Business Banking unit. The division earned $1.78 billion on revenues of $7.54 billion.
Bank of America's Global Banking unit was the second-biggest contributor to profits. Profits of $1.13 billion and revenues of $4.01 billion were both down slightly from the previous quarter.
Bank of America's Global Markets division lost $778 million compared to profits of $958 million in the second quarter. Revenues slipped to $3.38 billion from $4.19 billion in the prior quarter.
Global Wealth and Investment Management earned $719 million on revenues of $4.39 billion compared to $758 million and $4.50 billion in the second quarter.
Consumer Real Estate Services, the smallest unit by revenues, posted a $1 billion loss versus a $937 million loss in the second quarter. Revenues slipped to $1.58 billion from $2.12 billion in the second quarter.
Bank of America had 247,943 full-time employees at the end of the quarter, down from 257,158 at the end of the second quarter, 272,594 at the end of the third quarter a year ago and a peak of 290,500 at the end of the third quarter 2011.
Written by Dan Freed in New York.