Bank of America Posts Higher Than Expected Profit in Second-Quarter

Bank of America, which is trying to board on to banking after battling through several legal and mortgage troubles, on Wednesday said that its second-quarter profit more than doubled from previous year's profit.

Profit posted by the Bank of America even surpassed analysts' expectations. But analysts cautioned that although the good results reflect progress in cutting expenses, drop was also seen in litigation costs and other one-time items, like adjustments to the value of certain debt holdings, thanks to a rise in interest rates in the quarter.

Bank of America, which is based in Charlotte, N. C., earned $5.3 billion in the quarter, up from $2.3 billion in the quarter a year ago, showed reports. The bank earned 45 cents a share in the second quarter, which was up from 19 cents a share a year earlier.

The results exceeded analysts' expectations of 36 cents a share at a time when several critics raised question about the bank's stagnant share price and lackluster performance.

It was found that shares of the bank at the end of the day were up by 3.25 % to $17.68, which is said to be its strongest one-day gain in past months.

Brian T. Moynihan, chief executive of the bank, during a conference call with analysts on Wednesday, said, "Not only were we pleased with the bottom line but revenue was up and expenses were down. Lots of things came together to achieve these results".

It is known that Mr. Moynihan has been under pressure to improve the underlying results, now after the mortgage losses from the financial crisis and related litigation are almost entirely behind the bank.

Bank of America like many other banks has tried very hard to increase profits in a volatile trading environment with its low interest rates, which has depressed the value of many of its holdings.