UPDATE: Bank of America Posts Drop In Q2 Profit

Bank of America

reported a 43% drop in its second-quarter earnings. The bank's quarterly profit declined to $$2.29 billion, or $0.19 per share, versus a year-ago profit of $4.01 billion, or $0.32 per share. The latest quarter results included a litigation charge of $4 billion, or $0.22 per share. Its revenue slipped 4% to $21.96 billion. However, analysts were expecting earnings of $0.27 per share on revenue of $21.65 billion. Bank of America's fixed income, currency and commodities trading revenue climbed 5% y/y, while net charge-offs slipped 49%. Net interest income, on an FTE basis, fell 5% y/y to $10.2 billion, while noninterest income declined 4%. Noninterest expense rose to $18.5 billion, from $16.0 billion. At June 30, 2014, the bank had 233,201 full-time employees, down 9% versus the year-earlier period. Consumer and Business Banking posted net income of $1.8 billion, up 29% versus the year-earlier quarter. Consumer Real Estate Services posted a quarterly net loss of $2.8 billion. Global Banking posted a quarterly net income of $1.4 billion, up from $1.3 billion. Global Markets posted net income of $1.1 billion, up 14% versus the year-ago period. Chief Executive Officer Brian Moynihan said, "The economy continues to strengthen, and our customers and clients are doing more business with us." The executive added, "Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress." American International Group

today announced that it has reached a global resolution of its residential mortgage related disputes with Bank of America. Bank of America shares gained 0.51% to $15.89 in pre-market trading.