* 3rd-qtr profit 20 cents/share vs Street view 18 cents
* Provision for credit losses falls 83 pct to $296 mln
* Three of bank's five businesses post weaker results
By Peter Rudegeair
Oct 16 Bank of America Corp on Wednesday
posted a quarterly shareholder profit of $2.22 billion,
reversing a year-earlier loss, as fewer loans went bad.
The bank's loan portfolio performed better, but results
deteriorated in three of its five major businesses - consumer
real estate, commercial and investment banking, and sales and
Chief Executive Brian Moynihan has been struggling to put
the bank's legal problems behind it and start building revenue.
Excluding gains and losses from changes in the value of the
bank's debt, revenue in the third quarter fell 1.5 percent to
The second-largest U.S. bank earned 20 cents per share,
beating analysts' average estimate of 18 cents, according to
Thomson Reuters I/B/E/S.
In the year-earlier quarter, the bank recorded a net loss
attributable to common shareholders of $33 million due to
accounting adjustments, litigation expenses and tax charges.
In the latest quarter the bank was helped by the improved
performance of its loan portfolio. It wrote off $1.69 billion of
loans, down from $4.12 billion a year earlier.
With loans performing better and delinquencies falling
across all consumer portfolios, Bank of America set aside $296
million to cover bad loans, compared with $1.77 billion in the
same quarter last year.
Sales and trading revenue for the bank's fixed income,
currency and commodities business, excluding an accounting
adjustment, fell by $501 million to $2.0 billion due to lower
bond-trading volumes for much of the quarter.
Fixed-income traders were inactive for several weeks leading
up to the Federal Reserve's meeting in mid-September in the
expectation that the central bank would announce that it was
starting to wind down its bond-buying stimulus program.
Bank of America sold its remaining stake in China
Construction Bank Corp for $1.47 billion in
September, contributing $750 million pre-tax to the bottom line.
Bank of America shares have risen 23 percent this year, in
line with gains in the KBW index of bank stocks. The
shares were little changed in premarket trading after closing at
$14.24 on Tuesday.