By Rachel Louise Ensign 

Bank of America Corp. said Wednesday that third-quarter profit fell.

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.

Higher interest rates have boosted banks' performance since the Federal Reserve started raising them in late 2015. That is because banks were able to charge borrowers more interest without having to significantly increase payouts to depositors. The Fed cut rates in the third quarter and banks shifted accordingly.

Bank of America paid 0.76% on interest-bearing deposits in the third quarter, compared with 0.81% in the second quarter.

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

 

(END) Dow Jones Newswires

October 16, 2019 07:24 ET (11:24 GMT)

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