Bank of America swings back into profit in Q3 as cost-cutting pays off

New York

BANK of America Corp, the second biggest US lender, posted third-quarter profit of US$4.51 billion as litigation expenses tumbled and revenue exceeded some analysts' estimates.

Net income was 37 US cents a share, compared with a loss of US$232 million, or four US cents a share, a year earlier, when the Charlotte, North Carolina-based bank had US$6 billion in legal costs, the firm said on Wednesday in a statement. The average estimate of 22 analysts surveyed by Bloomberg was for adjusted earnings of 33 US cents a share.