Bank of America Reports $6.2 Billion in Q3 Profit (BAC)

Bank of America Corporation (NYSE: BAC), today, reported its third-quarter financial results. The company reported a profit in its third quarter, pushing shares higher at the start of trading today.

At last check, Bank of America shares were trading 4.15% higher at $6.28. The stock touched a high of $6.42 in early trading. Bank of America shares have fallen more than 50% this year.

Charlotte, North Carolina-based Bank of America reported a profit of $6.2 billion, or $0.56 per share for the third quarter of 2011. This compares with a net loss of $7.3 billion, or $0.77 per share reported in the third quarter of 2010. The company benefited from asset sales and cost cutting measures in the third quarter, including a gain from sale of its stake in China Construction Bank.

Bank of America’s revenue for the third quarter of 2011 increased 6% on a year-over-year basis to $28.7 billion. The company’s net interest income for the third quarter of 2011 was $10.7 billion, down from $12.7 billion reported for the same period in the previous year. Its net interest margin for the third quarter fell from 2.72% to 2.32%. Noninterest expense, meanwhile, rose 4.70% to $17.6 billion in the third quarter of 2011.

Bank of America’s mortgage unit lost $1.1 billion in the third quarter. Investment banking unit also registered a loss of $302 million due to the weak trading environment in the third quarter.

Brian Moynihan, CEO of Bank of America, said that the bank’s third-quarter results reflect several actions it took that highlight its ongoing transformation toward becoming a leaner, more focused company. Bank of America has announced a number of cost-cutting measures, including a number of layoffs, to achieve operational efficiency. The company plans to layoff as many as 30,000 of its workforce over the next few years and close 10% of its branches as it looks to become leaner.

Bank of America is implementing the cost-cutting measures following pressure from investors. The company’s shares have fallen more than 50% this year.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.