Bank Watch

Bank of America’s 2Q profit drops 18 percent

Bank of America on Monday became the latest of the largest U.S. banks to report second-quarter results.
Bank of America on Monday became the latest of the largest U.S. banks to report second-quarter results. Bloomberg

Bank of America on Monday reported $4.2 billion in second-quarter profits, a decrease of about 18 percent from the same quarter last year.

The Charlotte-based bank said it earned 36 cents a share, beating analysts’ expectations of 33 cents. But revenues fell to about $20.4 billion, compared with about $22 billion a year earlier, as the company was squeezed by low interest rates impacting banks everywhere.

“We had another solid quarter in a challenging environment,” CEO Brian Moynihan said in a statement.

“Our responsible growth strategy led to improved customer and client activity, and each of our four business segments reported higher earnings than the year-ago quarter. We also moved closer to our longer-term performance targets,” he said.

A year ago, the second-largest U.S. bank by assets reported a 132 percent increase in profits, as the company cut expenses, including legal costs. It also posted higher revenue in that quarter compared with the same period a year earlier.

Bank of America continues to slash expenses, a key focus for Moynihan since he took over in 2010. On Monday, the bank reported having 210,516 employees, a drop of 2,667 from the first three months of the year. The bank has said its Charlotte employment is about 15,000.

The bank also continues trimming its branches, which fell by eight in the second quarter to 4,681, compared with the first three months of the year. It shrunk its automated teller machines by five to 15,998.

Bank of America’s second-quarter results come after other large U.S. banks reported their performance in the quarter last week.

New York-based Citigroup reported $4 billion in profits, a decline of 17 percent from a year earlier.

San Francisco-based Wells Fargo said profit fell 3 percent to $5.56 billion. New York’s JPMorgan Chase reported a 1 percent decline in profits to $6.2 billion.

Among other large U.S. banks, New York’s Morgan Stanley will announce second-quarter results Wednesday. New York-based Goldman Sachs Group plans to announce second-quarter results Tuesday.

Deon Roberts: 704-358-5248, @DeonERoberts