By Rachel Louise Ensign 

A one-time charge dented Bank of America Corp.'s third-quarter profit, but the bank posted gains in its consumer, wealth and commercial businesses.

Quarterly profit at the Charlotte, N.C.-based bank, the second largest in the U.S. by assets, was $5.78 billion, compared with $7.17 billion a year ago. Per share, earnings were 56 cents. Analysts polled by FactSet had expected 54 cents per share.

Earnings were hit by a $2.1 billion charge related to the coming dissolution of the bank's payment-processing partnership with First Data Corp.

Third-quarter revenue was $22.81 billion, up from $22.72 billion a year ago. Analysts had expected $22.58 billion.

Profit rose in the bank's consumer banking, wealth and commercial units, but fell in the division that houses sales and trading.

Bank of America benefited from the series of interest-rate increases from the Federal Reserve that began in late 2015. That is because the bank was able to charge borrowers more interest without having to significantly increase payouts to depositors.

But now the Fed is moving in the other direction: It cut rates twice in the third quarter. That weighed on the bank's lending businesses. Net interest income rose 1% from a year earlier and held steady from the prior quarter.

Net interest margin fell to 2.41% from 2.44% in the prior quarter.

Loans were up about 5% and deposits rose about 4% from a year earlier.

Trading revenue rose 4%.

Write to Rachel Louise Ensign at rachel.ensign@wsj.com

 

(END) Dow Jones Newswires

October 16, 2019 07:45 ET (11:45 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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