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Bank Of America Q3 Profit Beats Estimates; Stock Rises

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Bank of America Corp. (BAC) reported net income of $5.8 billion, or $0.56 per share, for the third quarter of fiscal 2019. The company's third-quarter results included Merchant Services Joint Venture impairment Charge of $2.1 billion or $0.19 per share. Excluding the impairment charge, net income was $7.5 billion, or $0.75 per share, for the third quarter of fiscal 2019. In the prior year quarter, net income was $7.2 billion or $0.66 per share.

On average, 18 analysts polled by Thomson Reuters expected the company to report profit per share of $0.51, for the quarter. Analysts' estimates typically exclude special items.

Third-quarter revenue, net of interest expense, increased modestly to $22.81 billion from $22.72 billion, prior year, reflecting both higher investment banking fees and net interest income partially offset by an equity investment gain in the prior-year period. Analysts expected revenue of $22.79 billion, for the quarter.

Bank of America CFO Paul Donofrio said: "We remained disciplined in managing expenses and responsible in our approach to underwriting, which led to continued low costs and strong asset quality. In the quarter, we returned more than $9 billion to our shareholders."

The company said overall credit quality remained strong across both the consumer and commercial portfolios. The provision for credit losses increased to $779 million from $716 million, previous year. Average deposit balances rose 4 percent to $1.4 trillion. Book value per share increased 11 percent to $26.96 per share.

Shares of Bank of America Corp. were up more than 2 percent in pre-market trade on Wednesday.

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