Tomahawk, WI 10/23/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC) is one of the major banks in the U.S that is very sensitive to the market. This was aptly demonstrated recently when the bank announced its financial results and it emerged that it was one of the most affected in its mortgage department, much like other major banks such as Citigroup, JPMorgan Chase & Co, and Wells Fargo. However, it is worth mentioning that BAC, with a market cap of $155.12 billion, also benefited a great deal from its equity trading, which was the same experience as what other major U.S banks reported.

All U.S Major Banks Reported Strong Equity Trading Except Goldman Sachs

Goldman Sachs is the only market sensitive bank in the U.S that failed to report a strong equity trading performance when it recently announced its quarterly financial results. All these major banks reported loss in FICC, although this was not at the same level. The banking sector reported an average loss of 26% in FICC, during the third quarter of 2013 compared to the same period in 2012. Goldman Sachs and Morgan Stanley both experienced substantial loss of 45% in FICC, compared to the figure of 18% reported by banks such as BAC, Citi and JPMorgan Chase & Co.

When the bank released its earnings report last week, it emerged that BAC lost in shareholders equity compared to a similar period in 2012. In the same report, one could see that BAC’s debt securities had fallen in the third quarter of 2013 compared to the same period in 2012. BAC’s total assets have declined during this quarter compared to 2012. On the other hand, total deposits at BAC have improved during this quarter by a couple of percentage points. This has been attributed to the bank’s efforts in terms of risk reduction and balance sheet deleveraging.

BAC’s Debt and Expense Reduction Activities Paying Off

BAC’s efforts that are aimed towards reducing all forms of debts and expenses are to be lauded. Thus far, it seems that these efforts are producing the much-desired effect and are bearing fruit. It is worth mentioning that BAC has also benefited a great deal from its efforts in terms of encouraging consumer banking, and this has been cited as one of the top reasons for the profits that the bank posted during the third quarter of 2013. Big banks, such as BAC, have tended lag behind in many sectors, but they now seem to be catching up with the rest of the industry.

The banking sector, especially where the large banks are concerned, have reported huge profits throughout 2013, and this has continued right up to the third quarter. BAC has not been left behind, since it has reported profits in the third quarter of 2013 as well. A comparison of a few of these banks reveals that BAC made $2.5 billion, against Citi’s $3.2 billion, Goldman Sachs’ $1.52 billion, and the $1 billion posted by Morgan Stanley. JPMorgan would have been in this category as well except for the money it lost while catering for litigation costs.

BAC needs to continue on the path that it has embarked on, since this is working and giving it the revenue as well as profits it needs to win back investor confidence.

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