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BankAm tops estimates, Q3 net rises 31% to $3bn
New York, Oct 15: Bank of America Corp, the No 3 US bank, on Tuesday said that its third-quarter profit rose 31%, topping analyst estimates, helped by a tripling of mortgage banking income and growing deposits. The bank also set aside $100m to pay for regulatory probes into its Nations Funds mutual fund business.
Chairman and chief executive Kenneth Lewis said the bank is doing a better job adding and retaining customers. Bank of America said consumer and commercial banking income rose 28% to $2.2 bn, as mortgage banking income rose 203% to $666 m and credit card income rose 16% to $794 m. Investment banking income rose 33% to $513 m, and asset management income rose 95% to $123 m, it said.
Though profit rose, the quarter brought much unwelcome press, as investigators probed whether the bank allowed the Canary Capital Partners LLC hedge fund to illegally trade Nations funds. Asset management, which includes Nations, generated just 4% of third-quarter profit.
Bureau Report