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 leases increased 7 percent as consumers took more equity out of their homes and businesses borrowed to fuel expansion, the company said.

Revenue for the company rose 16 percent to $14.6 billion, while non-interest expenses increased 3.4 percent to $7.29 billion, the company said.

“The real contributor to the quarter was loan growth, which was robust,” Mark Batty, an analyst at PNC Advisors in Philadelphia, which holds Bank of America shares, told Bloomberg. “You have to give them credit for the fact, too, that expense growth was significantly less than revenue growth during the quarter.”

Chief Executive Kenneth Lewis is focusing on selling more of the bank’s products to each customer, a strategy he’s looking to extend to MBNA Corp., the credit-card issuer he agreed to buy in June, the company said.

The company’s stock had risen 51 cents, to $42.08, at 2:45 p.m. today, in the wake of the announcement.


What’s your opinion? Send your Letter to the Editor to

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription