This Day On The Street
Continue to site
ADVERTISEMENT
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 Earns $2.5 Billion

  • 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 ( TheStreet)-- 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.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.34 -0.12%
AAPL $112.76 -0.47%
FB $89.43 -1.74%
GOOG $618.25 -1.92%
TSLA $249.06 0.23%

Markets

Chart of I:DJI
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASDAQ 4,776.5080 -51.8170 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs