Bank of America Corp. today reported third-quarter earnings of $3.76 billion, or $.91 per diluted share, up 29 percent compared to earnings of $2.92 billion, or $.96 per share, a year ago. Under purchase accounting rules, year-ago results do not include the impact of FleetBoston Financial Corp., which was acquired on April 1, 2004.
In addition to the impact of Fleet, the company’s net-income improvement was driven by continued momentum in consumer banking, merger-driven cost savings, lower provision expense and gains on the sale of debt securities, according to a company statement.
Third-quarter earnings included merger and restructuring charges of $221 million pre-tax, which reduced earnings by 4 cents per share. These included $156 million for the Fleet merger and $65 million for severance related to the infrastructure initiative announced last week.
For the first nine months of 2004, Bank of America earned $10.29 billion, or $2.76 per share, up 27.4 percent compared to $8.08 billion, or $2.65 per share, a year earlier.
Revenue on a fully taxable-equivalent basis grew to $12.73 billion from $9.92 billion the previous year, an increase of 28.3 percent.
Bank of America shares were trading at $44.80 this morning.
What’s your opinion? Send your Letter to the Editor to email@example.com.