22 Jul 2008

Profit down at Bank of America again

5:56 pm on 22 July 2008

The largest retail bank in the United States, Bank of America, has reported its fourth quarterly profit decline in a row. However, the result was better than expected.

The bank, based in North Carolina, was hit by an increase in bad debts associated with the slump in the housing market and economic slowdown.

Second-quarter net income fell to $US3.41 billion from $US5.76b a year earlier.

Results included $US212 million in merger costs, but not the cost of merging with Countrywide Financial.

Bank of America acquired Countrywide Financial in July, the biggest mortgage lender in the United States, in a deal worth $US2.5 billion.