Bank Of America Q2 Profit Declines, Miss Estimates

(RTTNews) - Bank of America Corp. (BAC) reported Monday that net income applicable to common shareholders for the second quarter declined to $5.93 billion from last year's $8.96 billion, with earnings per share decreasing to $0.73 from $1.03 in the prior year.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude special items.

The provision for credit losses was $523 million, compared to a benefit of $1.62 billion million last year.

Total revenue, net of interest expense, increased 6 percent to $22.68 billion from $21.47 billion in the prior-year quarter. Wall Street expected revenues of $22.67 billion for the quarter.

Net interest income was $12.44 billion, up 22 percent from last year, driven by higher interest rates, lower premium amortization and loan growth.

Non-interest income declined 9 percent to $10.24 billion from last year, primarily reflecting weaker capital markets.

Noninterest expense increased 2 percent to $15.27 billion, reflecting approximately $425 million recognized for certain regulatory matters.