Bank of America Corp reported a third-quarter profit, boosted by accounting gains, but its main businesses struggled as income from lending and investment banking fell. But the bank's shares rose as some analysts and investors were heartened by higher-than-expected profit and an increase in quarterly revenue. The stock, which has been volatile, has fallen more than 50 percent since mid-January.
Asset sales contributed to Bank of America's ceding its ranking as the largest US bank by assets to J.P. Morgan Chase & Co BofA fell to No 2. Quarterly net income for shareholders was $5.89 billion, or 56 cents per share, compared with a loss of $7.65 billion, or 77 cents per share, a year earlier, when the bank took a $10.4 billion accounting charge.
Revenue rose 6 percent to $28.7 billion. Bank of America recorded $9.8 billion of pretax benefits from two accounting gains and from selling China Construction Bank Corp shares. It also took a pretax loss of $2.2 billion for private equity and strategic investments.
Excluding one-time items, profit was 25 cents per share, according to Barclays Capital analyst Jason Goldberg. Analysts on average expected 19 cents per share, according to Thomson Reuters I/B/E/S. Net interest income fell to $10.74 billion from $12.72 billion a year earlier.
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