Bank of America net profit slumps on $2.9 billion tax charge, adjusted income beats

Bank of America Corp’s (BAC.N) net profit nearly halved compared with a year earlier as it booked a $2.9 billion charge stemming from the new federal tax law although it beat analysts’ estimates when adjusted for the charge.

The lender joined other large U.S banks, including JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N), in reporting multi-billion dollar charges because the new law requires them to reassess their deferred tax assets and pay tax on profits kept abroad.

Excluding the tax charge, Bank of America earned $5.3 billion, or 47 cents per share. According to Thomson Reuters I/B/E/S, excluding the tax charge and another item, the company earned 48 cents per share, topping analysts’ estimate of 44 cents.

Revenue rose at three of the lender’s four businesses, pushing total revenue up about 2 percent to $20.69 billion.