Bank Of America Gets Blown Away By A Legal Fee

Bank of America reported its third quarter earnings on Monday, with a net income of $US168 Million and a loss of $US0.01 per share. Revenue came in at $US21.4 billion.

Analysts expected a loss of $US0.09 a share with the bank’s trading and investment banking business declining in the last quarter. Trading revenues, however, came in 9% higher from the last quarter, surprising analysts. Invesment banking revenue rose 4% over the same period.

What really made a negative impact on this report was the $US5.8 billion fine Bank of America paid to the Department of Justice. The bank says that it shaved down earnings per share by $US0.43.

“We saw solid customer and client activity and improved profitability in most of our businesses relative to the year-ago quarter,” said Chief Executive Officer Brian Moynihan. “We remain focused on streamlining and simplifying our company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for our shareholders.”

Check out the release here.

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