Bank of America reported a sharp rise in third-quarter earnings on Wednesday, but its mortgage operations faltered, underscoring that home loans remain a challenging business for the nation’s banks.þþBank of America said its quarterly profit rose to $2.5 billion, or 20 cents a share, from $340 million in the period a year earlier, when the bank was hit by litigation expenses and other charges.þþExcluding a type of financial charge that investors often ignore, third-quarter revenue fell slightly, to $22.2 billion, from $22.5 billion in the period a year earlier. Other large banks have also reported a decline in their top lines, an indication that, five years after the financial crisis, they are still struggling to expand their businesses.þþAnalysts expected the company to earn 19 cents a share in the latest quarter. Bruce Thompson, Bank of America’s chief financial officer, said on Wednesday that was fair to compare the estimates to the 20 cents a share that the bank reported.þþ“We made very good progress in an environment that did have its challenges,” Mr. Thompson said.þþBank of America’s wealth management operations, which contain Merrill Lynch, were a source of strength, posting $719 million of net income, a 26 percent jump from a year earlier. þþ“This was the best third quarter that wealth management has had – ever,” Mr. Thompson noted.þþBut the mortgage division reported a loss of $1 billion in the third quarter, worse than the $860 million loss a year earlier. þ
Source: NY Times
