Bank of America earnings drop 43%, costly legal expenses partly - myfoxcarolinas.com

Bank of America earnings drop 43%, costly legal expenses partly to blame

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Bank of America’s profits took a hit as legal expenses continue to eat away at the banking giant’s income.

After being hit with a $4 billion litigation expense, which included a $650 million settlement with AIG over bad residential mortgages, the bank reported a $2 billion profit for the quarter.

For shareholders, the bank’s $2 billion profit amounted to a 19 cent earning per share. These earnings represent a 43% drop from last year when the bank earned $3.2 billion in revenue, or 32 cents per share.

“The economy continues to strengthen and our customers and clients are doing more business with us,” CEO Brian Moynihan said. “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.”

Revenues for the quarter declined 4% to $22 billion.

The bank also has decreased the number of people it employs by 9 percent. The job cuts included 540 in Charlotte announced in late June.

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