October 19, 2007	Friday	Shawwal 6, 1428

NEW YORK, Oct 18: Bank of America’s chief executive admitted disappointment on Thursday as the financial giant’s third quarter profit fell sharply to $3.7 billion largely due to swelling investment losses.

The Charlotte, North Carolina-based financial titan, America’s second-largest banking group, said its latest quarterly earnings moderated a hefty 32 per cent from $5.4 billion a year earlier.

Bank of America’s profit fell short of Wall Street expectations, but its coffers bulged more than arch rival Citigroup -- the country’s biggest banking firm -- which disclosed a net profit of $2.4 billion for the quarter on Monday.

“While the significant dislocations in the capital markets have hurt most participants, we are still very disappointed in our third quarter performance,” Bank of America chairman and chief executive officer Kenneth Lewis said.

The bank unveiled earnings per share of 82 cents. Wall Street had anticipated earnings per share of $1.05.

Revenues moderated 12 per cent to $16.3 billion during the July-September period from the third quarter of 2006.Despite reaping a profit of well over $3 billion, Bank of America’s earnings potential was hit hard by a downturn in investment banking business, losses from mortgage-backed securities and other investment losses tied to the ailing credit markets.

The financial giant said “unprecedented market disruptions” stoked a 93-per cent decline in net income at its Global Corporate and Investment Banking division.

The unit’s income tumbled to $100 million compared with $1.43 billion a year ago

Bank of America, like many of its peers, has suffered from its exposure to the distressed trillion-dollar US mortgage market and credit markets.

It reported a net revenue loss of $527 million related to bets it waged on mortgage securities, including commercial mortgages, and other risky securities.

It said it had also been forced to write-down $247 million linked to loans and commitments tied to takeovers and acquisitions.—AFP