Boston, MA 10/15/2014 (wallstreetpr) – Bank of America Corp (NYSE:BAC) CFO, Bruce Thomson, said that the company was on track to achieve the objectives on cost structure established three years back. He said that it has made significant progress during the third quarter. Its credit quality metrics reflected improvement environment, as well as, its risk underwriting.
The CFO said that the company was focusing itself on maximizing the balance sheet so as to best serve the customers’ core financial requirements and still placed well to meet the new liquidity and capital requirements.
Bank of America’s CEO, Brian Moynihan, said that compared to the last year third quarter, it has improved its profitability in most of its businesses driven by solid client and customer activities. He said that it would continue to concentrate on simplifying and streamlining itself. It would also connect its clients and customers with the real economy since the move started paying dividends for Bank of America Corp (NYSE:BAC) and its shareholders.
Global Wealth Division’s Contribution
Bank of America Corp (NYSE:BAC)’s performance was strong in its global wealth and investment management division. It recorded 6.3% uptick in revenue to $4.67 billion in the third quarter from $4.39 billion while its net earnings surged 12.9% to $813 million from $720 million.
Similarly, its Global Markets achieved a revenue growth of 28.5% to $4.14 billion from $3.22 billion in the prior year quarter. The division reported profit of $769 million compared to a loss of $875 million in the year earlier quarter.
Bank of America Corp (NYSE:BAC)’s total revenue in consumer and business banking segment slackened 17 basis points to $7.51 billion from $7.52 billion. However, the segment earned 3.9% more profit at $1.856 billion helped by lower provision for credit losses.
However, the worst performer was its consumer real estate services. Its revenue plunged 30.9% to $1.09 billion from $1.58 billion in the previous year quarter. Non-interest expenses, including litigation costs of $5.3 billion, dragged the division to suffer a loss of $5.18 billion, which was wider than a loss of $990 million in the last year third quarter.
Net Revenue & Profit
Bank of America Corp (NYSE:BAC)’s total revenue dipped 1.4% to $21.4 billion for the third quarter from $21.7 billion in the year-ago quarter. Excluding equity gains and other adjustments, its revenue would have advanced 1% to $21.2 billion in the latest quarter. Its net interest income was $10.44 billion, down 33 basis points from $10.48 billion while non-interest income slipped 2.4% to $10.99 billion from $11.26 billion.
As a result of litigation expenses of $5.6 billion, its net income plummeted 93.3% to $168 million from $2.5 billion in the previous year quarter. The company suffered a loss of one cent a share in the current year’s third quarter compared to earnings of 20 cents a share in the year-ago quarter. Bank of America Corp (NYSE:BAC) indicated that excluding litigation expenses, its non-interest expenses would have dropped 7% to $14.2 billion to reflect its cost saving measures.