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Bank of America Beats Q3 Profit Forecast, Misses on Revenue; Shares Slump

Bank of America said net interest income for the third quarter fell 17% from last year to $10.1 billion as its overall revenues missed Wall Street forecasts.

Bank of America Corp.  (BAC) - Get Bank of America Corp Report posted stronger-than-expected third quarter earnings Wednesday, but fell short on revenues and booked more than $1 billion in provisions against bad loans. 

Bank of America said profits for the three months ending in September were tabbed at 51 cents per share, donw 9% from the same period last year and 2 cents ahead of the Street consensus forecast. Group revenues, Bank of America said, fell 11% to $20.5 billion, missing analysts' estimates of a $20.8 billion tally.

Bank of America also said it increased its third quarter credit loss provisions by $1.4 billion, a figure that's down from the $5.12 billion in booked in the three months ending in June. Net interest income, the bank said, fell 17% to $10.1 billion, missing Street forecasts of $10.5 billion.

"As the economy continued to recover, we generated nearly $5 billion in earnings this quarter, reflecting the diversity of our business model, our industry-leading market position and digital capabilities, and our adherence to responsible growth," said CEO Brian Moynihan 

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"Our Consumer business earned $2.1 billion as asset quality remained sound and spending rebounded," he added. "Our Wealth Management business showed once again why it is an industry leader in providing timely advice and guidance to clients, and our Global Banking and Global Markets businesses continued to support the global economy by helping clients raise capital, manage risk and increase liquidity." 

Bank of America shares were marked 2.4% lower in early trading immediately following the earnings release to change hands at $24.32 each, a move that trims the stock's six-month gain to just 2.8%.

JPMorgan  (JPM) - Get JPMorgan Chase & Co. (JPM) Report and Citigroup  (C) - Get Citigroup Inc. Report both posted Street-beating earnings on Tuesday, with the pair also booking loan loss provision figures that were much lower than analysts had expected.

JPMorgan's total was just $611 million, while Citigroup's was pegged at $2.3 billion, well south of the $7.9 billion booked in the previous quarter.