Industry News

BofA’s second-quarter earnings jump

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Bank of America today reported second quarter earnings of $3.85 billion, or $1.86 per share (diluted), compared with earnings of $2.74 billion, or $1.80 per share, a year ago. Current results reflect the addition of FleetBoston Financial Corp., which the company acquired April 1, 2004. Under purchase accounting rules, year-ago and first-quarter 2004 results do not include the impact of Fleet. Second-quarter earnings included pre-tax merger-related expenses of $125 million, which reduced earnings per share four cents. Estimated cost savings from the merger were $206 million in the quarter. Company officials attributed the bank's strong performance to the merger's impact as well as results in its consumer banking and commercial banking sectors. Non-interest income was $5.44 billion compared with $4.26 billion a year earlier. The increase was driven primarily by the impact of the Fleet merger. Other factors included record investment banking income and higher card income, which was ...