US: Litigation hits Bank of America

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Bank of America’s quarterly profit had declined 43 percent as it spent $4 billion (R43bn) to cover litigation costs, including a mortgage settlement with American International Group, it said yesterday. Net income fell to $2.29bn in the quarter to June, or 19c a share, from $4.01bn, or 32c, a year earlier. Earnings excluding litigation costs were 41c a share, topping the 29c average estimate in a survey of 24 analysts. The shares fell 0.7 percent in New York early yesterday. Revenue fell 4.3 percent to $22bn, while expenses surged 16 percent to $18.5bn because of mortgage-related costs. – Bloomberg

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