Bank of America Corporation reported Tuesday a
net loss of $8.8 billion in the second quarter of 2011, with
the bank saying it still was absorbing costs from mortgage
The Charlotte, North-Carolina-based bank's figure compares with net income of $3.1 billion in the same quarter last year.
In a statement, Bank of America said second-quarter results were largely affected by charges recently absorbed to settle mortgage repurchases and other mortgage-related costs.
The loss in the quarter ending June 30 came on revenues of 13.24 billion dollars, down 54 percent year on year but higher than analysts' projections.
The bank said these costs had been partially offset by lower credit costs, gains from the sale of non-core assets and debt securities, along with improved sales and trading revenues and higher asset management fees and investment banking fees.
"Obviously, the solid performance in our underlying businesses continues to be clouded by the costs we are absorbing from our legacy mortgage issues," said Bank of America Chief Executive Officer Brian Moynihan.
He said the bank would continue its efforts "to put the mortgage uncertainty" behind it and start to "deliver the returns for shareholders that we owe them."
The bank's business report comes some three weeks after it announced an $8.5 billion settlement with 22 major investors who had lost money in mortgage-backed securities.
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