Bank of America Corporation today reported net income rose to $2.5 billion in the third quarter of 2013 from $340 million in the year-ago quarter. Earnings per diluted share increased to $0.20 from $0.00 in the third quarter of 2012. For the nine months ended September 30, 2013, net income increased to $8.0 billion from $3.5 billion in the same period a year ago.
Relative to the year-ago quarter, the results for the third quarter of 2013 were driven by reduced negative credit valuation adjustments on the company's credit spreads and increases in equity investment income, net interest income and investment and brokerage income. The company also benefited from improved credit quality and lower expenses. These factors were partially offset by lower mortgage banking income and the negative impact from remeasuring certain deferred tax assets due to the U.K. corporate income tax rate reduction enacted in July 2013.
"This quarter, we saw good loan growth, improved credit quality and record deposit balances. Our customers and clients continue to do more business with us," said Chief Executive Officer Brian Moynihan. "The economy and business climate will improve even more quickly as conditions normalize, and we are well positioned to benefit from that."
"We continued to make good progress on our expense initiatives, and we further strengthened our capital and leverage ratios," said Chief Financial Officer Bruce Thompson.
Selected Financial Highlights
|Three Months Ended|
|(Dollars in millions, except per share data)||September 30 2013||June 302013||September 302012|
|Net interest income, FTE basis 1||$||10,479||$||10,771||$||10,167|
|Total revenue, net of interest expense, FTE basis||21,743||22,949||20,657|
|Total revenue, net of interest expense, FTE basis, excluding DVA and FVO 2||22,187||22,900||22,529|
|Provision for credit losses||296||1,211||1,774|
|Diluted earnings per common share||$||0.20||$||0.32||$||0.00|
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