BofA reports slight second quarter profit increase

19 July 2010

Bank of America (BofA) recorded a profit of $3.2 billion during the second quarter, up on the $3.1 billion seen during the first three months of the year.

The figure was the equivalent of 27 cents per share when compared with $0.33 recorded in the same period the previous year.

According to the financial institution, the statistics were the result of lower costs surrounding credit, the sale of non-customer facing assets and a new focus on strengthening “key business lines”.

The performance beat forecasts from Thomson Reuters, which anticipated a profit of $2.3 billion or 22 cents per share.

However, the bank reported that these results were offset by increased costs surrounding bonus payments in the UK and a decline in profits from trading accounting.

Brian Moynihan, chief executive officer and president at BofA, said: “Our quarterly results show that we are making progress on our strategy to align around our three core customer groups - consumers, businesses, and institutional investors - and create the financial institution that customers tell us they want, built on a broad relationship of clarity, transparency, and helping them manage through challenging times.”

Further findings from the bank showed that BoFA extended its credit facility to $174 million during the second quarter of the year.

By Jim Ottewill

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development