Bank of America (BAC) on Wednesday reported profits of $2.5 billion for second-quarter 2012, or 19 cents a share, beating analysts' estimates of 14 cents. A year ago, the bank showed a net loss of $8.8 billion, or 90 cents a share, largely due to mortgage-related losses.
Revenues were up 66%, to $21.97 billion, compared with a year ago.
Relative to the same quarter a year ago, the results for the second quarter of 2012 reflect higher mortgage banking income, driven largely by lower provisions for representations and warranties, the absence of the goodwill impairment charge and improved credit quality across most major portfolios, according to BofA's second-quarter earnings release.
"In a challenging global economy, we still see opportunities to do more with our customers and clients," said CEO Brian Moynihan in a statement. "Lending to commercial businesses increased for the sixth straight quarter—with small-business lending and commitments up 23% in a year—and consumer credit is in the best shape in years."
