Bank of America, the second largest bank assets in the US, reported higher than expected earnings in each of the main four divisions. The net profit fell 21% to 4.23 billion USD in the quarter after accounting fine for almost 1 billion USD , said based in Charlotte, NC, bank on Monday. Earnings per share amounted to 36 cents from 43 cents a year ago. The CEO Brian Moynihan is focused on reducing costs, while permanently low interest rates cut revenue and profit. Moynihan said in April, after the report on first quarter results, which showed better than expected savings, “there is still much to do.” Earlier this year, the Chief Operating Officer Thomas Montag issued an order to the managers of trading and investment banking to reduce costs, said sources familiar with ahead of time.
Costs fell by 3.3% to 13.5 billion USD , while revenues decreased by 7.1% to 20.4 billion USD . Division for global markets, including trade posted a profit of 42% to 1.12 billion USD revenue growth. The Bank has earned 2.62 billion USD from trading bonds, up from 22%, beating the average estimate of 200 million USD. Profit from trading shares again amounted to 1.09 billion USD, a drop of 7.6% compared to the estimates.
“We are moving towards a more long-term performance targets” higher earnings in all of our four business segments”, said Moynihan.
Shares of Bank of America fell by 19% from the beginning of the year. The profit of the division management of global wealth grew by 7.9% to 722 million USD, while revenues fell by 2.4%. During most of his reign Moynihan fight the legal costs related to acquisitions of Countrywide Financial and Merrill Lynch from its predecessor. JPMorgan Chase & Co., the largest US bank by assets, last week reported earnings above analyst estimates after growth in revenues from trading fixed income and credit. Citigroup and Wells Fargo, however, reported a decline in profits.