Bank of America earned net income of $2.5 billion in the third quarter, a sevenfold increase from $340 million in the same period last year, the bank said on Wednesday.
While the company’s bonds trading already has suffered the effects of the US government’s partial shutdown and possible default on loans, its quarterly profit grew significantly due to stern austerity measures and timely credit payments from customers.
“Our customers and clients continue to do more business with us,” said Brian Moynihan, the bank’s chief executive. “The economy and business climate will improve even more quickly as conditions normalise, and we are well positioned to benefit from that.”
The bank profited mainly from the effects of the economic recovery in the US, which allowed borrowers to make regular loan payments. In addition, Bank of America also sold all its shares in the China Construction Bank, which brought in an extra $800 million before taxes.
Austerity measures at the company also decreased costs: the bank cut 9,200 jobs during the third quarter leaving the current number of employees at 247,900.
While the company’s bonds trading already has suffered the effects of the US government’s partial shutdown and possible default on loans, its quarterly profit grew significantly due to stern austerity measures and timely credit payments from customers.
“Our customers and clients continue to do more business with us,” said Brian Moynihan, the bank’s chief executive. “The economy and business climate will improve even more quickly as conditions normalise, and we are well positioned to benefit from that.”
The bank profited mainly from the effects of the economic recovery in the US, which allowed borrowers to make regular loan payments. In addition, Bank of America also sold all its shares in the China Construction Bank, which brought in an extra $800 million before taxes.
Austerity measures at the company also decreased costs: the bank cut 9,200 jobs during the third quarter leaving the current number of employees at 247,900.
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