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BUSINESS A25
Thursday 15 October 2015
Wells Fargo’s earnings edge up 1 percent to $5.4 billion
KEN SWEET $1.05 a share, for the three- bellwether for the housing making from lending is de- cause both companies do
AP Business Writer month period ending in market because it is the clining, however. Net inter- not have large investment
NEW YORK (AP) — Wells Far- September. That com- largest mortgage lender in est income, or the differ- bank and trading business-
go reported a slight gain in pares with a $5.41 billion, or the U.S. The bank originat- ence between what Wells es.
third-quarter earnings on $1.02 a share, in the same ed $55 billion in mortgages Fargo charges to lend and Wells Fargo did report
Wednesday, helped by an period a year earlier. in the last quarter. what it pays depositors, fell some credit deterioration
increase in borrowing from Wells Fargo reported loan Like JPMorgan and Bank to 2.96 percent from 3.06 in the loans it made to the
consumers and businesses. growth across all of its ma- of America, Wells reported percent in the same peri- oil and gas industry, similar
The San Francisco-based jor businesses, from com- a noticeable increase in od a year earlier. Wells and to the issues that JPMorgan
bank earned $5.44 billion mercial and industrial loans deposits, which rose 6 per- Bank of America are hurt had, and had to hold onto
after payments to pre- to residential mortgages. cent to $1.2 trillion. more by low interest rates reserves this quarter in-
ferred shareholders, or Wells is often seen as a The profit Wells Fargo is than some other banks be- stead of releasing them.q
Bank of America profits, earns $4.1 billion in third quarter
KEN SWEET While the total amount of This photo shows a Bank of America sign in Philadelphia. Bank of America Corp. reported
AP Business Writer BofA’s loans was roughly
NEW YORK (AP) — Bank unchanged, the bank quarterly financial results Wednesday, Oct. 14, 2015. (AP Photo/Matt Rourke)
of America, the consumer continued to dispose of
banking giant, said it swung troubled loans left over ported lower profits. Trans- 215,193 employees at the nancial crisis. The division
to a profit in the third quar- from the financial crisis and action revenue fell, which end of the third quarter, had a loss of $196 million
ter on Wednesday, helped made more loans to busi- more than offset higher as- compared with 229,538 in in the quarter, but that’s
by lower borrowing costs nesses and individuals. set management fees. 2014. an improvement from a
and legal expenses. In a statement, CEO Brian Like JPMorgan Chase, The bank also did better loss of $5.11 billion a year
The bank based in Char- Moynihan characterized Bank of America has been in its legacy assets and ago. The number of mort-
lotte, North Carolina, the bank’s latest results as on an aggressive cost-cut- servicing division, which is gages delinquent by 60
earned $4.1 billion, or 37 “solid.” ting campaign, which has where BofA put the bad days or more fell by nearly
cents a share, for the “The key drivers of our busi- included branch closures mortgages and other toxic half from a year ago to
three-month period end- ness — deposit taking and and layoffs. The bank had assets left over from the fi- 114,000.q
ing in September. That lending to both our con-
compares with a loss of sumer and corporate cli-
$470 million, or 4 cents a ents — moved in the right
share, in the same period a direction this quarter,”
year earlier. BofA booked Moynihan said.
$6 billion in legal expenses Earnings at Bank of Amer-
last year to help cover part ica’s consumer bank-
of a $16.65 billion legal set- ing division, by far its big-
tlement it reached with the gest business, climbed 5
Department of Justice. percent. BofA said con-
Revenue fell to $20.68 bil- sumer borrowing increased
lion from $21.4 billion a broadly, a positive sign for
year earlier. the U.S. economy. Credit
BofA’s lending busi- card issuance, mortgage
ness continued to improve originations and deposits
in the third quarter. Its costs in brokerage accounts all
of lending fell, there were rose.
fewer delinquent loans The bank’s wealth and in-
and more customers bor- vestment management
rowed money. division, Merrill Lynch, re-
CSX delivers relatively flat 3Q profit despite volume dip
JOSH FUNK ceeded the 50 cents per road worked to worked to demand has shrunk over they’re hitting it out of the
AP Business Writer share analysts surveyed control costs and improve the past several years park,” Purk said.
OMAHA, Neb. (AP) — Tight by Zacks Investment Re- service while dealing with because low natural Besides the coal declines,
cost controls helped CSX search, but its $2.94 billion market challenges. gas prices and concerns CSX also reported signifi-
Corp. deliver relatively flat revenue fell short of the “Commodity prices and about pollution regula- cant drops in shipments of
third-quarter profit even $3.04 billion revenue Wall the strength of the U.S. dol- tions prompted many utili- fertilizers, industrial metals
though the railroad hauled Street expected. lar are challenging many ties to switch from coal to and housing construction
3 percent less freight and CSX affirmed its predic- of our markets,” Ward said. gas. waste.
continued facing weak tion for 2015 profit growth Coal revenue fell 19 per- Edward Jones analyst Lo- The railroad cut its expens-
coal demand. in the mid-single digits cent in the quarter to $583 gan Purk said most of the es 11 percent to just over
The Jacksonville, Florida- despite the ongoing coal million because demand factors hurting CSX’s results $2 billion because of lower
based company said this weakness and the overall from U.S. utilities and ex- are out of the railroad’s fuel prices, lower costs re-
week it earned $507 mil- decline in volume. port markets was weaker control, such as the health lated to shipping volume
lion, or 52 cents per share. The railroad’s stock gained than expected. of the economy, natural and improved efficiency.
That’s roughly in line with 1 percent in after-hours The stronger U.S. dollar gas prices and weather. CSX operates more than
last year’s $509 million, or trading to sell for $28. and economic problems “The two items that CSX 21,000 miles of track in 23
51 cents per share. CSX Chairman and CEO elsewhere have hurt coal can really control — pric- Eastern states and two
The railroad’s profit ex- Michael Ward said the rail- exports. Domestic coal ing and efficiency — Canadian provinces.q
