Bank of America doubles quarterly profit

Noam Stiekema

Bank of America reported its biggest quarterly profit in four years. This happens after the total cost went down to its lowest level since 2008 because of the sharp decline in legal costs. Net profit of the second-largest US bank in April-June period almost doubled to 4.99 billion. USD, or 45 cents a share, from […]

Bank of America

Bank of AmericaBank of America reported its biggest quarterly profit in four years. This happens after the total cost went down to its lowest level since 2008 because of the sharp decline in legal costs. Net profit of the second-largest US bank in April-June period almost doubled to 4.99 billion. USD, or 45 cents a share, from 2.04 billion USD an year ago. The average analyst estimate was for earnings per share of 36 cents. In the second quarter of 2014, the positive financial result, Bank of America had collapsed from litigation costs in the amount of 4 billion USD related to mortgage disputes since the financial crisis. In the second quarter of 2015 the costs fell to 175 million USD.

So far, Bank of America pay at least 70 billion USD to settle litigation initiated because of the financial crisis. Fines and costs overshadowed attempts director Brian Monihan, who took office in 2010, reduce the overall cost.

“Furthermore benefited from the improving US economy, where we pretty well positioned”, said the head of treasury in a press release on results.

The interim report shows that non-interest expenses decreased by 25.5% to 13.82 billion USD, while net interest income rose by 4.7% to 10.49 billion USD. The total revenues amounted to 22.12 billion USD, representing 1.7% growth yoy.

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