Wells Fargo's profit declined and revenue fell, but Bank of America produced an increase in profit. Fred Katayama reports.
Bank of America's quarterly profit rose 15 percent, mostly thanks to cost cutting and higher interest rates. Loans grew and the quality of credit got better. But BofA's trading revenue fell. Revenue from fixed income trading dropped more than 20 percent. Despite that, Bank of America's third-quarter earnings beat those of rivals JPMorgan and Citigroup. BofA's shares rose on the news. Kelly & Co.'s managing partner Kevin Kelly. (SOUNBITE) KEVIN KELLY, MANAGING PARTNER, KELLY & CO. (ENGLISH) SAYING: "When you break down banks earnings all of had different things impact them, right, and a lot of different catalysts moved them. But what we do know is that net interest margins have stalled, loan growth is slowing, and so what we need is deregulation. You saw that actually come out with a note from Morgan Stanley. Morgan Stanley banking analysts say if we had deregulation happening, we could see eight percent earrings per share raise next year at the large money centered banks." On the flip side... Wells Fargo's profit dropped 19 percent. It was weaker then expected. The bank blamed a $1 billion accrual for a legal settlement over issues from before the recent financial crisis. Wells Fargo also got hit with a drop in mortgage banking revenue. Its shares lost ground.