Bank of America Corporation (NYSE:BAC), the second largest U.S. bank, reported better-than-expected second quarter earnings and revenue figures ahead of Wednesday’s opening bell, sending its shares higher in pre-market trade.
Bank of America said adjusted earnings per share came in at 41 cents, above expectations for earnings of 29 cents a share. Results included litigation expense of $4.0 billion, or approximately 22 cents per share.
The bank’s second quarter revenue totaled $21.96 billion, beating estimates for revenue of $21.65 billion.
Second quarter net profit was $2.29 billion, compared to $4.01 billion in the year-ago period.
Bank of America reached a settlement with American International Group (NYSE:AIG) to resolve residential mortgage-backed securities claims for $650 million.
"The economy continues to strengthen, and our customers and clients are doing more business with us," said Chief Executive Officer Brian Moynihan.
"Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress," he added.
Immediately after the earnings announcement, Bank of America (NYSE:BAC) shares rose 1.5% in trading prior to the opening bell.
Meanwhile, U.S. stock futures pointed to a modestly higher open. The Dow futures pointed to a gain of 0.15% at the open, the S&P 500 indicated a rise of 0.2%, while the Nasdaq 100 signaled an increase of 0.3% at the open.