NEW YORK — Things keep getting worse for Bank of America.
The nation’s largest bank reported a loss of $9.1billion during the second quarter, partly due to an $8.5 billion settlement with investors. That agreement, reached in June, settled claims that the bank had sold the investors poor-quality mortgage bonds.
The Charlotte, N.C. bank has been hamstrung by litigation and demands from investors who want Bank of America to buy back the bonds that it sold years ago. In the quarter, the bank set aside an additional $1.9 billion to fight litigation bringing the total mortgage-related charges in the second quarter to $20.7 billion. The bank does not disclose the total amount reserved for litigation costs.
The reported loss available to common shareholders was 90 cents per share, wider than the 85 cents a share loss expected by analysts surveyed by FactSet. Excluding charges related to investor settlements, Bank of America Corp. earned $3.7 billion, or 33 cents per share. That compares with net income of $3.1 billion, or 27 cents a share, in the same quarter last year. The bank’s revenue declined 54 percent to $13.2 billion from $29.1 billion in the same period last year.
NEW YORK — Goldman Sachs Group Inc. says it earned $1.05 billion in the second quarter, more than double compared with the same period a year ago.
The results fell short of analysts’ expectations. The investment bank’s stock fell 3 percent in pre-market trading.
The bank cut costs as its revenues fell 18 percent.
Goldman Sachs set aside $3.2 billion for employee pay, 16 percent less than a year ago. Other expenses were down 18 percent, but that was partly because Goldman had to pay a record fine to regulators last year to settle charges that it misled investors about mortgage securities.
NEW YORK — Wells Fargo & Co. says its second-quarter profit rose 30 percent, boosted by a release of reserves set aside to cover souring loans as its customers continued to improve their loan and credit card payments.
The San Francisco bank says its net income rose to $3.73 billion, or 70 cents per share, in the three months ended June 30. Wall Street was expecting 69 cents per share, on average.
Revenue edged down 5 percent to $20.39 billion, just short of analyst estimates for $20.43 billion. Revenue in its largest segment, community banking, fell.
The largest contributor to the quarter’s results came from a $1 billion release from the money set aside to cover uncollected loans and credit card bills, as the amount written off from bad loans dropped.