Bank of America Corp. reported higher third-quarter profits due to an accounting gain and a pretax gain on asset sales.

Bank of America, the nation's largest bank by assets, said net income applicable to common shareholders was $5.9 billion, or 56 cents per share, in the quarter, compared with a loss of $7.6 billion, or 77 cents per share, in the same period a year earlier, when the bank took a $10.4 billion accounting charge.

(Reporting by Rick Rothacker and Joe Rauch in Charlotte, North Carolina; Editing by Derek Caney)