Bank of America Corporation announced a petite jump in net income in the third quarter driven by growth in consumer revenue from product lines including mortgages.
The company announced its net income at $2.24 billion for the third quarter, compared with earnings of $2.22 billion during the second quarter. The third quarter figure represents an almost $1.4 billion increase from last year's third quarter earnings of $841 million. However, last year's third quarter 2001 earnings included $1.25 billion in after-tax costs related to the exit of the company's subprime real estate lending and auto leasing businesses.
Third quarter results were driven by ongoing growth in consumer revenue from such product lines as mortgage, credit card, and deposits, as well as lower credit costs, according to the announcement.
"Although the environment remains challenging, we are optimistic that we will continue to gain market share in our businesses and differentiate Bank of America in the eyes of our customers and investors," said Kenneth D. Lewis, chairman and chief executive officer.
Average consumer loans grew 8% to $192 billion from last year, the report said. Mortgage banking income doubled to a record $218 million from last year.
"We continue to benefit from our diversified business mix," Lewis said.
On the production side, originations were up 66% over second quarter 2002 at $23.9 billion, said Eloise Hale, Bank of America spokeswoman.
As of June 30, the company's servicing portfolio is at $288 billion. Servicing portfolio figures are only announced twice a year, she said.
The average residential loan during the third quarter was $93,559, and the average commercial loan was $153,577, she said.