Bank of America boosts profits 634%

Charlotte, N.C.-based Bank of America Corp. (NYSE: BAC) boosted third-quarter net income 634 percent to $2.5 billion, up from $340 million last year. The company's third quarter of 2012 was adversely affected by litigation expenses and other charges.

Litigation expenses totaled $1.1 billion in third-quarter 2013, down from $1.6 billion in third-quarter 2012. During the same quarter last year, Bank of America settled a shareholder lawsuit over the purchase of Merrill Lynch, stemming from allegations Bank of America misled investors about the acquisition, according to the New York Times.

The holding company, which operates six Bank of America branches in Springfield, recorded third-quarter earnings per share of 20 cents, compared to no profit in the same quarter a year ago, according to a news release.

Third-quarter financial highlights:

• Long-term debt dropped $31 billion from the same quarter a year ago, reportedly driven by maturities and liability management actions.
• Provision for credit losses decreased 83.3 percent to $296 million from $1.8 billion.
• Excluding debt valuation adjustments and fair value option adjustments, revenue was $22.2 billion, down from $22.5 billion a year ago.

As of Sept. 30, the company's assets totaled $2.1 trillion and deposits were $1.1 trillion. Bank of America claims roughly 51 million consumer and small-business customers with approximately 5,200 branches, the release said.

BAC shares were trading at $14.48 as of 9:23 a.m., compared to a 52-week range of $8.92 to $15.03.[[In-content Ad]]