Bogged down by sour mortgage-related charges, Bank of America slumped deep into the red posting a loss of $8.8 billion for three months ended June.
The banking major had raked in a profit of $3.1 billion in the year-ago period, it said in a statement Tuesday.
Last month, Bank of America (BofA) had disclosed that it would set aside $14 billion in one of the biggest settlements of investor claims in relation to the losses suffered during the 2008 U.S. financial crisis.
The massive settlement charges outweighed BofA’s lower credit costs, gains from sale of non-core assets and debt securities, among others.
BofA also saw improved sales and trading revenues as well as higher asset management and investment banking fees in the June quarter.
The company’s total revenues, net of interest expense, stood at $13.24 billion in the April-June quarter.
BofA Chief Executive Officer Brian Moynihan said the solid performance in its underlying businesses continues to be clouded by the costs from legacy mortgage issues.
In the June quarter, the banking entity extended about $147 billion worth credit, including $84 billion in commercial non-real estate loans.
src-Hindu & Yahoo
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