Bank of America (BAC) Posts Q3 adj.-EPS of 42c

(Updated - October 15, 2014 7:05 AM EDT)

Bank of America (NYSE: BAC) reported Q3 EPS of ($0.01), which may not compare with the analyst estimate of ($0.09). Revenue for the quarter came in at $21.4 billion versus the consensus estimate of $21.33 billion.

The results include the previously announced pretax charge of $5.3 billion for the settlement with the Department of Justice, certain federal agencies and six states (DoJ Settlement), which impacted earnings per share by $0.43. Earnings in the year-ago period were $2.5 billion or $0.20 per diluted share.

*** Adjusted EPS was $0.42, including DVA gains, which compares with the consensus EPS estimate of $0.32.

Revenue, net of interest expense, on an FTE basis declined 1 percent from the third quarter of 2013 to $21.4 billion. Revenue, net of interest expense, on an FTE basis, excluding equity investment gains ($9 million in the third quarter of 2014 and $1.2 billion in the third quarter of 2013) and valuation adjustments related to changes in the company's credit spreads, increased 1 percent from the year-ago quarter to $21.2 billion from $21.0 billion.

“We saw solid customer and client activity and improved profitability in most of our businesses relative to the year-ago quarter,” said Chief Executive Officer Brian Moynihan. “We remain focused on streamlining and simplifying our company and connecting customers and clients with the real economy, an approach that is paying dividends for them and for our shareholders.”

"We continued to focus on optimizing the balance sheet this quarter so we can best serve the core financial needs of our customers and clients and still be in a position to meet new capital and liquidity requirements in an evolving regulatory framework," said Chief Financial Officer Bruce Thompson. "We also made significant progress on our cost structure, staying on track to meet the goals we established three years ago, and our credit quality metrics reflect both the improved environment and our risk underwriting."

For earnings history and earnings-related data on Bank of America (BAC) click here.

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