Bank of America, the second-biggest U.S. bank by assets, said second-quarter profit fell 21% as it took an accounting charge and posted a decline in wealth management revenue.
Net income dropped to $4.23 billion, or 36 cents a share, from $5.13 billion, or 43 cents, a year earlier, the Charlotte, N.C., lender said Monday. The average estimate of analysts surveyed by Bloomberg was for earnings per-share of 33 cents.
Revenue fell 7.1% to $20.4 billion. Global wealth management revenue declined 2.4% to $4.5 billion. The bank reaped $2.62 billion from bond trading, a 22% increase, and $1.09 billion from equities, a 7.6% drop.
Chief Executive Officer Brian T. Moynihan, 56, spent most of his tenure wrestling with legal costs tied to his predecessor's acquisitions of Countrywide Financial and Merrill Lynch. Last week, the bank dissolved the business segment it created in 2011 to house delinquent mortgage loans, putting more distance between the firm and its woes from the financial crisis.
Bank of America has focused on cutting expenses while persistently low interest rates crimp revenue and profit. Moynihan said in April after reporting first-quarter results that showed better-than-expected cost reductions that "there's a lot more to do." Chief Operating Officer Thomas Montag, 59, issued an edict to trading and investment-banking managers this year to lower costs, people with knowledge of the matter said earlier this year.
JPMorgan Chase, the largest U.S. bank by assets, posted second-quarter profit last week that beat analysts' estimates as fixed-income trading revenue and loan growth increased. Profit declined at Citigroup and Wells Fargo.