new York Bank of America earned significantly less in the second quarter due to higher reserves for bad loans and legal costs. Profits fell 33 percent year-on-year to $6.2 billion, the US money house announced on Monday.
Revenues rose 6 percent to $22.7 billion. However, strong growth in some business areas such as securities trading could not offset higher costs.
The bank increased risk provisions for loans threatened with default due to the gloomy economic outlook and also set aside around 425 million dollars for unspecified legal conflicts. It didn’t go well in all divisions either. In investment banking, for example, revenue collapsed due to a lack of IPOs and mergers. The share initially reacted to the numbers with price losses before the market, but quickly recovered.