Bank of America Corp(NYSE:BAC) earned $340 million
during the third quarter, a fall of 95 percent from a year earlier as higher
provisioning for bad loans hit profits.
The bank posted a jump in revenues from bond trading
while revenues from mortgages rose by a quarter.
On Wednesday the bank posted net earnings of nil per
share, for the quarter, compared with 56 cents a share a year earlier.
Analysts' average forecast was a loss of 7 cents per
share.
The bank had set aside $1.8 billion in the quarter to
cover bad loans, down from $3.4 billion a year earlier.
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The bank seems to be still haunted the acquisitions
that the company made during the financial crisis. In September it had agreed
to pay $2.4 billion to settle claims which alleged that it had hidden crucial
information from shareholders when it had bought Merrill Lynch at the height of
the crisis.
The bank also had to buy back mortgages worth $3.8
billion in the third quarter, acceding to demand from investors who had bought
mortgage-backed securities.
In order to boost profits the bank had also launched a
cost-cutting program with the aim to save $8 billion in annual expenses. The
bank said it was on track to attain its savings goal.
Shares of BAC are trading flat at $9.45.
Meanwhile cola company, PepsiCo, Inc.(NYSE:PEP) reported
a 5 percent in net income in the third quarter as the company spent more on
bolstering its existing brands and developing new products to prepare for the
future.
For the period ended Sept. 8, PepsiCo said it earned
$1.9 billion, or $1.21 per share. That's compared with $2 billion, or $1.25 per
share, a year ago.
Total revenue fell 5 percent to $16.65 billion, partly
because of unfavourable currency exchange rates and the refranchising of its
business in China and Mexico.
Analysts expected revenue of $16.96 billion.
Shares of PEP fell 0.33% to $70.07.
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