Industry News

Bank of America profit jumps 10 percent

Real estate loans help drive increased revenue growth

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Profits at Bank of America jumped 10 percent in the third quarter of 2005, the company said today. Third-quarter net income rose to $4.13 billion, or $1.02 a share, from $3.76 billion, or 91 cents, a year earlier, Charlotte, N.C.-based Bank of America said today. The company, which is the fifth largest U.S. mortgage lender by total volume, earned $1.04 a share excluding merger costs. A group of analysts surveyed by Thomson Financial had predicted a report of $1.02 share. Revenue growth was driven primarily by increases in noninterest income, including a rebound in mortgage banking income, continued strength in card results, service fees, improved trading account profits and higher equity investment gains, the company said. First mortgage loans originated in the third quarter rose to $27.5 billion, $10.9 billion higher than the third quarter of 2004, as borrowers took advantage of a favorable rate environment during the quarter, the company said. Bank of America's average loans and le...