Bank of America CFO sees larger home equity losses

NEW YORK, Oct 18 (Reuters) - Bank of America Corp (BAC.N) Chief Financial Officer Joe Price on Thursday said he expects home equity losses to continue to rise as real estate values soften, while some parts of capital markets likely won't return to the levels they attained before recent disruptions.

Speaking on a conference call, Price also said portfolio growth and "seasoning" will contribute to higher home equity losses.

In capital markets, he said some areas of capital markets have begun to "free up," but "some areas will take an extended period of time to normalize, and some will probably not return to pre-disruption levels."

Earlier Thursday, Charlotte, North Carolina-based Bank of America posted a larger-than-expected 32 percent decline in quarterly income, hurt by an increase in bad loans as well as by rising investment banking and trading losses. (Reporting by Jonathan Stempel)