Bank of America profits falls 16% in third quarter

Bank of America Corp says profit fell 15.6 per cent to USD 4.88 billion in the third quarter from USD 5.78 billion a year ago. Six analysts surveyed by Zacks expected USD 20.61 billion. Bank of America shares have declined 29 per cent since the beginning of the year, while the Standard & Poor's 500 index has risen almost 9 per cent.

Bank of America Corp says profit fell 15.6 per cent to USD 4.88 billion in the third quarter from USD 5.78 billion a year ago. The bank, based in Charlotte, North Carolina, said it had earnings of 51 cents per share.

The results did not meet Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 53 cents per share. The nation's second-largest bank posted revenue of USD 21.69 billion in the period. Its revenue net of interest expense was USD 20.34 billion, which also missed Street forecasts and was down from USD 22.8 billion a year earlier. Six analysts surveyed by Zacks expected USD 20.61 billion.

Bank of America shares have declined 29 per cent since the beginning of the year, while the Standard & Poor's 500 index has risen almost 9 per cent. The stock has dropped 14 per cent in the last 12 months..