CHARLOTTE, N.C. (AP) — Bank of America Corp. said Tuesday that its profits rose more than 30 percent in the third quarter, driven by across-the-board gains in the bank’s major businesses.
Net income totaled $2.92 billion, or $1.92 per share, in the July-September period, up from $2.24 billion, or $1.45 per share, in the third quarter of 2002.
The gains exceeded Wall Street’s expectations. Analysts surveyed by Thomson First Call projected the bank’s profit at $1.69 a share.
“Deeper customer relationships and better retention are fueling our strong revenue growth and record profits this quarter,” Ken Lewis, chairman and chief executive, said in a statement accompanying the report.
During the quarter, the Charlotte, N.C.-based bank put $100 million in reserve to fund the ongoing investigation of its Nations Funds mutual fund business. The bank said it also increased its litigation reserve by $75 million to cover other cases.
Last week, Bank of America said it will establish a restitution fund for shareholders of its Nations Funds who may have lost millions of dollars because of alleged improper trading that gave a hedge fund advantage over other investors.
The hedge fund, Canary Capital Management LLC, and its managers agreed to pay $30 million in restitution for profits generated from improper trading, plus a $10 million penalty to settle allegations lodged by New York Attorney General Eliot Spitzer.
Lewis said that the third-quarter results were driven by deposit and loan growth, strong investment banking and trading results, and improved mortgage and card revenues.
Net income for the first nine months was $8.08 billion, or $5.31 a share, up from $6.64 billion, or $4.22 a share, in 2002.
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