Bank of America Shares Up After Earnings Increase
Bank of America reported second quarter profit that beat Wall Street's expectations on Wednesday, sending its shares higher in premarket trading.
After the earnings announcement, the company's shares rose 1.6 percent in trading before the opening bell.
The company [BAC 7.92 ] posted second-quarter earnings excluding items of 19 cents per share, from a loss of 90 cents a share in the year-earlier period, when the bank took $20.7 billion in mortgage-related and other charges.
Revenue was $21.97 billion, an increase from $13.24 billion a year ago.
Analysts had expected the company to report earnings excluding items of 14 cents a share on $22.87 billion in revenue, according to a consensus estimate from Thomson Reuters.
The improvement in earnings came after the second-largest U.S. bank cut costs and reduced reserves for loan losses.
The Charlotte, North Carolina-based bank has lagged its peers in recovering from the financial crisis, largely due to losses tied to its 2008 purchase of subprime lender Countrywide Financial.