Bank of America Posts Lower Profit, Cuts Dividend
Oct. 6 (Bloomberg) -- Bank of America Corp. will cut its dividend by 50 percent and plans to sell $10 billion in common shares after third-quarter profit fell 68 percent. The stock fell in late trading.
Bank of America profit dropped to $1.18 billion, or 15 cents a share, in the quarter ended Sept. 30, from $3.7 billion, or 82 cents, in the same period last year, the Charlotte, North Carolina-based company said in a statement.
``These are the most difficult times for financial institutions that I have experienced in my 39 years in banking,'' Chief Executive Officer Kenneth Lewis said in the statement. ``It is prudent to raise capital to very substantial levels in this uncertain environment.''
Bank of America dropped 7.2 percent to $29.91 as of 4:27 p.m. in extended trading. During the regular session, the bank dropped 6.6 percent.
Lewis said ``recessionary conditions'' and the outlook for an even weaker economy will drive up credit losses and depress earnings.
BLOOMBERG
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