BofA books 68% profit decline

Bank of America Corp. today posted a 68% decline in third-quarter profits on charges from bad credit market investments and credit cards. The Charlotte, N.C.-based investment bank said its net income fell to $1.18 billion, or 15 cents per share, from $3.7 billion, or 82 cents per share, a year ago. Analysts surveyed by New York-based Thomson Reuters had forecast a net profit of $3.22 billion, or 62 cents per share. The company also cut its dividend in half to 32 cents per share and will sell up to $10 billion in common stock to bolster its balance sheet. "We believe it is prudent to raise capital to very substantial levels in this uncertain environment," Kenneth D. Lewis, chairman and chief executive of Bank of America, said in a statement. The company attributed the decline to credit losses, which rose to $6.45 billion, from $2.03 billion in the third quarter of 2007. The company also reported that net charge-offs — loans that the company doesn't think it can collect on — increased to $4.32 billion, from $1.57 billion a year ago. Bank of America shares declined $2.82 per share, or 8.75%, to $29.40 in after-hours trading.