Profits up 5% at BofA

20 July 2007

Bank of America (BofA) has recorded second-quarter profits of $5.76 billion, or $1,28 a share – a rise of 5.2 per cent compared with the year ago period.

The bank's net income in the second quarter of 2006 had stood at $5.48 billion, or $1.19 a share.

The figure represents a significantly better than expected performance for BoA, with analysts polled by Reuters predicting a return of $1.20 per share.

Revenue, meanwhile, was up 7.8 per cent to $20 billion, which once again exceeded analysts' expectation of $18.7 billion.

Principal factors behind the improved performance were a 17 per cent increase in fee income to $11.2 billion, while gains from equity investment were also up to $1.83 billion from a figure of $699 million for the same period last year.

Meanwhile, growth at the corporate and investment banking division saw profit rise to $1.67 billion from $1.6 billion, while income from debt underwriting was up 28 per cent and advisory fees more than doubled.

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