Bank of America share price: Cost Cuts Help Lift Q2 Net Income

on Jul 17, 2013
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iNVEZZ.com, Wednesday, July 17: Bank of America Corp (NYSE:BAC), the second-largest US bank by assets, today reported a rise in second quarter net income by 63 percent to $4.0 billion from $2.5 billion in the second quarter of 2012. Earnings per diluted share were 32 cents compared with 19 cents in the year-ago quarter. Analysts on average had forecasted earnings per share of 26 cents, according to data compiled by Bloomberg. The results put Bank of America ahead of rivals JPMorgan Chase & Co (NYSE:JPM) and Citigroup Inc (NYSE:C) in terms of profit, even though the North Carolina-based bank recorded the smallest revenue gain of the three, by 3.5 percent year on year to $22.7 billion.

The Bank of America share price rose in New York trading and was up 1.29 percent at $14.10 as of 14:48 GMT.
One of the factors for the profit jump in the second quarter was the aggressive cost-cutting effort. Bank of America’s operating expenses fell to $16.02 billion from $17.05 billion in the second quarter last year.
Bank of America’s Chief Executive Officer Brian T. Moynihan has said he’ll eliminate $8 billion in annual costs by the end of 2014 and $10 billion tied to troubled mortgages a year later.
**The Bank of America share price was $14.08 as of 15:05 GMT, 17.07.2013**

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