Bank of America, the second largest U.S. bank by assets, reported a 43 percent drop in second-quarter profit as mortgage revenue fell and litigation costs increased.
Earnings attributable to shareholders fell to $2.04 billion, or 19 cents per share, in the three months ended June 30 from $3.58 billion, or 32 cent per share, a year earlier.
Analysts had expected Bank of America to report earnings of 29 cents per share on $21.61 billion in revenue, according to a consensus estimate from Thomson Reuters.
Wall Street has enjoyed a strong run of second-quarter earnings, with JPMorgan Chase and Goldman Sachs both beating expectations this week. Yet, BofA has been locked in tense discussions with federal officials over shoddy mortgage securities packaged and sold by the bank prior to the 2008 financial crisis. In recent days, U.S. Attorney General Eric Holder reportedly told the bank that a meeting to hammer out a deal would not be productive, given that the two sides remain far apart.
-By CNBC with Reuters.