Bank of America has earned a net income of $5.77bn in the third quarter of this year, a 21% decrease compared to $7.34bn recorded during the second half of the year and 19% decline compared to $7.16bn during the corresponding quarter of last year.
The bank earned total revenue of $22.8bn, which included net interest income and non-interest income, a slight increase compared to $22.7bn revenue in the third quarter of last year. The bank’s total revenue decreased by 1% when compared to the second quarter net income of $23.08bn.
Expenses of Bank of America, for the third quarter were $15.17bn, an increase of 13% compared to $13.26bn in the second quarter of this year and a 16% increase compared to $13.01bn in the third quarter of last year.
According to the American banking giant, average loan and lease balances in business segments increased by $52bn or 6% to $923bn. Consumer and commercial loans each increased by 6%.
Average deposit balances also increased by $59bn or 4% to $1.4tn
The return on average assets fell from 1.2% in the second quarter to 0.95% in the third quarter. Return on average common shareholder’s equity also declined from last quarter’s $11.62 to $8.48 this quarter.
Net income in the Consumer Banking segment was $3.3bn in the third quarter. Compared to the third quarter of last year, it was $3.16, a 5% increase. Revenue also increased from $9.44bn in the third quarter of last year to $9.71bn in the quarter under review.
In the Global Wealth and Investment Management segment, the net income was $1.1bn, increasing by 8% from $1.01bn for the third quarter of last year.
Net income from the Global Banking segment stood at $2.09bn, increasing by 3% compared to $2.03bn of last year’s third quarter. The segment earned revenue of $5.2bn, which was up from last year’s third quarter of $4.83bn, an 8% increase.
Bank of America chairman and CEO Brian Moynihan said: “Our teammates delivered another strong quarter of earnings and returns for shareholders. In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities, all while core expenses are flat.
“Our client activity, the expansion of our client base, and our ability to gain market share across most of our businesses in the quarter, all reflect responsible growth.”
