BofA earnings tumble on $4-bn expense for litigation
Bank of America Corp, the second- biggest US bank, said profit declined 43 per cent as it spent $4 billion to cover litigation costs, including a mortgage settlement with American International Group Inc.
Net income fell to $2.29 billion in the second quarter, or 19 cents a share, from $4.01 billion, or 32 cents, a year earlier, the Charlotte, North Carolina-based lender said on Wednesday in a statement. Earnings excluding litigation costs were 41 cents a share, 12 cents more than the average estimate of 24 analysts surveyed by Bloomberg.
Revenue in the quarter dropped 4.3 percent to $22 billion as expenses climbed 16 per cent to $18.5 billion because of the litigation costs.
Net income fell to $2.29 billion in the second quarter, or 19 cents a share, from $4.01 billion, or 32 cents, a year earlier, the Charlotte, North Carolina-based lender said on Wednesday in a statement. Earnings excluding litigation costs were 41 cents a share, 12 cents more than the average estimate of 24 analysts surveyed by Bloomberg.
Revenue in the quarter dropped 4.3 percent to $22 billion as expenses climbed 16 per cent to $18.5 billion because of the litigation costs.