Bank of America released third-quarter earnings.
The bank reported earnings per share of 20 cents.
Third quarter revenue came in at $21.7 billion.
Net income for Q3 came in at $2.5 billion.
On average, analysts expected BofA to report adjusted earnings per share of 20 cents, according to Bloomberg.
Sales were expected to come in at $21.945 billion, according to data compiled by Bloomberg. Net income adjusted was expected to be $2.672 billion.
Shares of BofA were last trading up more than 1.5% in the pre-market.
Here's an excerpt from the release:
Bank of America Reports Third-Quarter 2013 Net Income of $2.5 Billion,or $0.20 per Diluted Share, on Revenue of $21.7 Billion
Effects of Previously Announced ItemsPretax Gain of $0.8 Billion on Sale of Remaining China Construction Bank Shares Partially Offset by $0.4 Billion in Negative Valuation Adjustments, Resulting in $0.02 Benefit to EPS Charge Related to Reduction in U.K. Tax Rate of $1.1 Billion, or $0.10 EPS Continued Business Momentum Total Consolidated Deposit Balances up 4 Percent From Q3-12 to a Record $1.1 Trillion Funded $24 Billion in Residential Home Loans and Home Equity Loans in Q3-13 More Than 1 Million New Credit Cards Issued in Q3-13 Global Wealth and Investment Management Reports Record Asset Management Fees of $1.7 Billion; Pretax Margin of 25.5 Percent Commercial Loan Balances up 19 Percent From Q3-12 to $395 Billion Bank of America Merrill Lynch Maintained No. 2 Ranking in Global Investment Banking Fees and Was Ranked No. 1 in the Americas in Q3-13 Expense Reduction Initiatives Remain on Track Credit Quality Continued to Improve With Net Charge-offs Down 59 Percent From Q3-12 Capital and Liquidity Remain Strong Basel 1 Tier 1 Common Capital of $143 Billion, Ratio of 11.08 Percent, up From 10.83 Percent in Prior Quarter Estimated Basel 3 Tier 1 Common Capital Ratio of 9.94 Percent, up From 9.60 Percent in Prior Quarter Estimated Bank Holding Company Supplementary Ratio Improved to Above Proposed 5 Percent Minimum Long-term Debt Down $31 Billion From Year-ago Quarter, Driven by Maturities and Liability Management Action Parent Company Liquidity Remained Strong With Time-to-required Funding at 35 Months
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.
CHARLOTTE — 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.
"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.
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