The Bank of America slips to number two

Bank of America posted a third-quarter profit yesterday, helped by accounting gains and asset sales, though the bank’s main businesses showed signs of weakness as lending profits dropped and expenses rose.
By The Newsroom
Published 19th Oct 2011, 07:00 BST

The accounting gains and asset sales offset a 15 per cent drop in loan income, and the investment banking unit posted a loss. Bank of America also ceded its standing as the largest US bank by assets to JPMorgan Chase, falling to number two.

Revenue nonetheless increased.

“Earnings were very good – surprisingly good – especially the revenue,” said Tim Ghriskey, chief investment officer at Solaris Asset Management in New York.

Hide Ad
Hide Ad

Chief executive Brian Moynihan is under pressure to prove he’s turning around the North Carolina-based bank, which has been besieged by mortgage losses and lawsuits. He has secured a $5bn investment from Warren Buffett’s Berkshire Hathaway.

Related topics:New York