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Bank of America reported profit in Q3 2011

Bank of America announced third-quarter profit after the sale of assets and the accounting effects, although the main business of the bank looks unhealthy because of the reduction in revenue and rising costs. For many years, Bank of America headed the list of largest U.S. bank by assets, but now lost its first place JPMorgan Chase. Once dropped at the opening of the New York Stock Exchange, shares of Bank of America rose 1.3%. The accounting profits of the bank and the sale of assets made up 15% decline in revenue from lending in the third quarter.
"The published results do not correspond to reality", said Matt McCormick, portfolio manager of Bahl & Gaynor Investment Counsel. "I think without accounting adjustments profits would be zero. Revenues were particularly weak". In the third quarter, Bank of America announced a net profit of 5.9 billion USD or 56 cents per share, compared with losses of 7.6 billion USD or 77 cents per share a year earlier, when the reported accounting provisions for 10.4 billion USD. The bank records 9.8 billion USD before taxes from the sale of shares in China Construction Bank. Bank of America reported a loss before taxes of 2.2 billion USD, private assets and "strategic investments".
The net profit of the bank lending fell to 10.7 billion USD from 12.7 billion USD for the same period last year. The net interest margin - interest on loans minus interest on deposits - fell to 2.32 percent from 2.72 percent a year ago. Total revenues of the bank for the quarter increased by 6% to 28.7 billion USD.