Bank of America earnings jump on big drop

GMT 13:42 2015 Wednesday ,15 July

Arab Today, arab today Bank of America earnings jump on big drop

Bank of America
New York - AFP

Bank of America reported Wednesday a big jump in quarterly earnings in results that were lifted by a major drop in legal expenses from the year-ago period.

Earnings for the second quarter were $5.3 billion, up from $2.3 billion in the 2014 quarter, when the company had a $4.0 billion charge for litigation expenses.

Revenues rose 1.8 percent to $22.34 billion.

"Solid core loan growth, higher mortgage originations and the lowest expenses since 2008 contributed to our strongest earnings in several years, as we continued to build broader and deeper relationships with our customers and clients," said chief executive Brian Moynihan.

"We also benefited from the improvement in the U.S. economy, where we are particularly well positioned."

BofA had higher consumer banking profits behind increased deposits and lower expenses.

But earnings fell in other divisions. Profits in global banking fell as strong loan growth was offset by lower investment banking income.

Earnings in global markets also dropped as fixed income, currency and commodities trading revenues fell, offset by gains in equity trading.

BofA results translated into 45 cents per share, nine cents above analyst expectations.

BofA shares jumped 3.2 percent to $17.68 in pre-market trade.


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