The bank has been hamstrung by litigation and demands from investors who want Bank of America to buy back the bonds that it sold years ago. In the quarter, the bank set aside an additional $1.9 billion to fight litigation bringing the total mortgage-related charges in the second quarter to $20.7 billion. The bank does not disclose the total amount reserved for litigation costs.
The reported loss available to common shareholders was 90 cents a share, wider than the 85 cents a share loss expected by analysts surveyed by FactSet. Excluding charges related to investor settlements, Bank of America earned $3.7 billion, or 33 cents a share. That compares with net income of $3.1 billion, or 27 cents a share, in the same quarter last year. The bank's revenue declined 54% to $13.2 billion from $29.1 billion in the same period last year.
While several of the bank's businesses reported positive earnings, almost all of them saw declines in revenue. Loan losses in its consumer businesses dropped for the fifth consecutive quarter. More of the bank's customers paid on time, which led to a 60% decline in the amount the bank puts aside for credit losses from last year.
Bank of America's credit card division reported income of $2 billion, up $1.2 billion from the year-ago quarter, as customers paid on time. However, revenue declined $1.4 billion.
Commercial banking was another bright spot, reporting net income of $1.4 billion, up $566 million from a year ago. But revenue in the division decreased $73 million from a year ago. For the latest updates PRESS CTR + D or visit Stock Market news Today
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