Despite Q3 Loss, BofA's Operating Performance Improves

The bank's net interest income increased after falling for two consecutive quarters thanks to a 7 basis point improvement in net interest margins (from 2.22% in Q2 2014 to 2.29% in Q3 2014). Each of Bank of America's operating divisions except for the mortgage arm - which incurred the settlement expenses - saw a decent improvement in pre-tax income year-on-year. This can be largely attributed to continued cost benefits from the bank's ongoing reorganization plan - Project New BAC.