Bank of America (BOA) recorded a healthy profit in the second quarter of the year thanks to its restructuring plans, it has emerged.
The major US financier announced yesterday (18 July) that it made net profit of $2.5 billion throughout this three-month period as its decision to cut costs and reduce its reserves to deal with bad debt took effect on its income.
This represents a marked reversal on the net loss of $8.8 billion the bank posted at the corresponding time in 2011, while the group's total revenue also climbed to $21.97 billion compared to $13.24 billion in quarter two last year.
Under the terms of its cost-cutting plans, BOA is hoping to save around $8 billion annually by the midway point of 2015.
Brian Moynihan, chief executive of the financier, observed: "In a challenging global economy, we still see opportunities to do more with our customers and clients."
By Gary Cooper