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Bank Of America Q3 Profit Declines, But Tops Estimates - Quick Facts

Bank of America Corp. (BAC) reported Wednesday a profit for the third quarter that declined from last year, hurt by higher provision for credit losses. Earnings per share for the quarter topped analysts' expectations, while quarterly revenues missed it.

Net income applicable to common shareholders for the quarter declined to $4.44 billion from last year's $5.78 billion, with earnings per share decreasing to $0.51 from $0.56 in the prior year.

On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $0.49 per share for the quarter. Analysts' estimates typically exclude special items.

The provision for credit losses was $1.39 billion, up from $779 million in the prior year, driven by COVID-19 impacts in commercial.

Revenue, net of interest expense, declined 11 percent to $20.34 billion from $22.81 billion in the prior-year quarter. Wall Street expected revenues of $20.81 billion for the quarter.

Net interest income was $10.13 billion, down 17 percent from last year, driven by lower interest rates. Non-interest income also declined 4 percent to $10.21 billion from last year, primarily reflecting lower consumer fees. Noninterest expense decreased 5 percent to $14.40 billion, reflecting higher net costs related to COVID-19 and higher litigation expense.

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