Bank of America Posts Slide but Beats Q2 Expectations

41% drop in net earnings still better than forecast; shares rise 9.3% pre-market

By Jim O'Neill, Newser User

Posted Jul 21, 2008 7:33 AM CDT

(Newser) – Bank of America reported a 41% decrease in net income today, beating analyst expectations as writedowns shrank to $1.22 million in the second quarter from $2.81 billion a quarter earlier, reports the Wall Street Journal. The bank also said it expects to make money this year from its takeover of troubled mortgage lender Countrywide.

The nation’s largest retail bank was the latest to out-perform analyst predictions, and saw its share price jump 9.3% in pre-market trading. While non-performing loans continued to be a problem, B of A said revenues rose 3.5% to $20.3 billion in the quarter, pushing net income to $3.41 billion or 72 cents a share, down from $5.76 billion a year ago.

Bank of America Chairman and CEO Ken Lewis addresses traders on one of the bank's trading floors at Bank of America Tower, in New York. (AP Photo/Bank of America, Stuart Ramson)

A person walks past a Bank of America ATM in Charlotte, N.C. (AP Photo/Chuck Burton)

Pedestrians pass a branch office of Bank of America in New York. (AP Photo/Mark Lennihan, file)

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Bank of America Posts Slide but Beats Q2 Expectations

41% drop in net earnings still better than forecast; shares rise 9.3% pre-market

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Bank of America • earnings reports • Countrywide • subprime crisis • Kenneth Lewis

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More Newser Stories

This Woman's Job: to Make You Like BofA

Anne Finucane juggles politicians, shareholders, and customers

BofA Pays $335M to Settle Claims Over Minority Loans

It's the largest fair-lending settlement in history

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Bank of America 'Hindered' Feds' Investigation

Company refused to let employees answer questions, allow walk-through

Investors Sue Countrywide Over 'Massive Fraud'

Their triple-A-rated securities are now junk, they claim

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Bank of America Posts Slide but Beats Q2 Expectations

41% drop in net earnings still better than forecast; shares rise 9.3% pre-market

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OTHER STORIES ON OUR RADAR

Bank of America • earnings reports • Countrywide • subprime crisis • Kenneth Lewis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

This Woman's Job: to Make You Like BofA

Anne Finucane juggles politicians, shareholders, and customers

BofA Pays $335M to Settle Claims Over Minority Loans

It's the largest fair-lending settlement in history

Perry Gave Huge Tax Grants to Subprime Lenders

Countrywide, WaMu got $35M as they upped risky loans

Bank of America 'Hindered' Feds' Investigation

Company refused to let employees answer questions, allow walk-through

Investors Sue Countrywide Over 'Massive Fraud'

Their triple-A-rated securities are now junk, they claim

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Newser By Users

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What is Newser?