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Non-interest expenses fell 31 percent to $13.81 billion in the
third quarter, mainly due to an 83 percent drop in expenses in
the bank's legacy assets and servicing unit, which houses many
of the bad loans inherited from Countrywide Financial.
Excluding litigation costs, expenses fell 4 percent as the bank
cut jobs and restructured to offset the impact of low interest
rates and weak trading revenue.
Net interest income fell 6.7 percent to $9.74 billion on a fully
taxable equivalent basis. Bond trading revenue declined 10.9
percent to $2 billion.
BofA shares rose 2.4 percent in premarket trading.
Moynihan, who took the top job at BofA in 2010, shook up the
bank's management in July, replacing Chief Financial Officer
Bruce Thompson with longtime executive Paul Donofrio.
BofA, which has paid more than $70 billion in legal expenses
since 2008, said its legal costs fell for the third straight
quarter, dropping to $231 million from $6 billion a year
earlier.
"The key drivers of our business - deposit taking and lending to
both our consumer and corporate clients - moved in the right
direction ...," Moynihan, who is also the bank's chairman, said
in a statement.
BofA's non-interest income, which includes mortgage banking,
rose 1.6 percent to $11.17 billion.
BofA reported net income of $4.07 billion, or 37 cents per
share, attributable to shareholders for the quarter ended Sept.
30.
In the year-earlier period, the bank had a loss of $470 million,
or 4 cents per share, as it took a $5.6 billion charge related
to the mortgage settlement.
Analysts on average had expected earnings of 33 per share,
according to Thomson Reuters I/B/E/S. It was not immediately
clear if the figures reported on Wednesday were comparable.
Total revenue on a fully taxable equivalent basis fell 2.4
percent to $20.91 billion.
(Reporting by Sweta Singh and Anil D'Silva in Bengaluru; Editing
by Kirti Pandey)
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