Bank of America has reported third quarter 2008 net income of $1.18 billion, or $0.15 per share, down from $3.70 billion, or $0.82 per share, in the corresponding period of 2007.

Revenue net of interest expense on a fully taxable-equivalent basis rose 21% to $19.90 billion from $16.47 billion a year earlier.

For the third quarter of 2008, net interest income on a fully taxable-equivalent basis rose 33% to $11.92 billion from $8.99 billion in the third quarter of 2007 due to the acquisitions of LaSalle and Countrywide, loan and deposit growth, and the impact of rate movements. The net interest yield increased 32 basis points to 2.93% due to increased yields on market-based activity driven by the steepening of the yield curve and the mix of products.

Noninterest income increased 7% to $7.98 billion in the third quarter of 2008 from $7.48 billion in the corresponding period of 2007. The company booked a $630 million charge for providing support to cash funds and losses of $313 million related to auction-rate securities.

Investment banking income was up 22% from the previous year to $474 million. Revenue in capital markets and advisory services was adversely impacted by $952 million in CDO-related charges, $327 million in leveraged loan and commercial mortgage related writedowns and $190 million in losses on a commitment to buy back auction-rate securities from clients.

Kenneth Lewis, chairman and CEO of Bank of America, said: Our company continues to be profitable, and we have been able in the last year to make a number of moves that should significantly enhance our earnings when economic and financial market conditions improve. Our diversity and scale give us strength to deal with the current issues that few competitors can match. I have never been more optimistic about the long-term prospects of Bank of America.