Bank of America quarterly profits more than doubled

Bank of America says its second-quarter net income more than doubled from last year to $5.3bn (£3.4bn).

The bank, the US’s second-largest, said a rise in mortgage revenue and a drop in expenses helped lift results.

“Solid core loan growth, higher mortgage originations and the lowest expenses since 2008 contributed to our strongest earnings in several years,” said chief executive Brian Moynihan.

He added that the bank also benefited from improvement in the US economy.

The report is a far cry from last year, when second-quarter profits dropped sharply after a fall in mortgage revenue and a rise in legal costs. A year ago, the firm was still grappling with the after- effects of the global financial crisis.

This quarter’s results beat analysts’ forecasts, helping to send Bank of America’s shares nearly 3% higher on Wall Street, trading at $17.63 per share.

Bank of America’s report follows JP Morgan Chase’s better-than-expected earnings released on Tuesday, as its legal costs fell sharply.

 

 

 

 

Source: BBC NEWS

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