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Bank Of America Bests Wall Street Estimates

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The Associated Press

Published: July 22, 2008

CHARLOTTE, N.C. - Bank of America Corp. has become the latest in a string of big banks whose second-quarter earnings, while hurting from the impact of the credit crisis, still managed to beat Wall Street expectations.

The nation's second-largest bank by assets said Monday its profits fell 41 percent as losses in its struggling mortgage operations were offset by business in other parts of the company. But it easily beat Wall Street estimates, and its stock rose $1.07, or 3.9 percent, to $28.56.

Four of the nation's five biggest banks have reported better-than-estimated results. JPMorgan Chase & Co. and Wells Fargo & Co. reported smaller-than-expected profit declines, and Citigroup Inc. had a milder-than-expected $2.5 billion loss.
Wachovia Corp., the nation's fourth-largest bank, is expected to report earnings today. The Charlotte-based bank has said it may post a $2.6 billion to $2.8 billion loss for the quarter.

Bank of America, also based in Charlotte, reported net income of $3.41 billion, or 72 cents per share, on $20.32 billion in revenue, in the April to June period.

That compared with net income of $5.76 billion, or $1.28 per share, on $19.63 billion in revenue a year earlier.

Analysts on average expected a profit of 53 cents per share on $18.37 billion in revenue.

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