Bank of America today reported second quarter earnings of $3.85 billion, or $1.86 per share (diluted), compared with earnings of $2.74 billion, or $1.80 per share, a year ago.
Current results reflect the addition of FleetBoston Financial Corp., which the company acquired April 1, 2004. Under purchase accounting rules, year-ago and first-quarter 2004 results do not include the impact of Fleet.
Second-quarter earnings included pre-tax merger-related expenses of $125 million, which reduced earnings per share four cents. Estimated cost savings from the merger were $206 million in the quarter.
Company officials attributed the bank’s strong performance to the merger’s impact as well as results in its consumer banking and commercial banking sectors.
Non-interest income was $5.44 billion compared with $4.26 billion a year earlier. The increase was driven primarily by the impact of the Fleet merger. Other factors included record investment banking income and higher card income, which was somewhat offset by lower mortgage banking income as mortgage originations declined from year-ago levels.
Revenue on a fully taxable-equivalent basis grew to $13.19 billion from $9.79 billion the previous year.
Bank of America shares were trading at 84.85 this morning.
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