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."
The Global Wealth and Investment Management unit that includes Merrill Lynch and Merrill Edge advisors posted higher year-on-year profits, with reported Q2 net income of $543 million versus $513 million a year ago, up 5.5%. However, profits were lower than in Q1, when GWIM reported net income of $547 million.
The total number of financial advisors rose to 17,534 from 17,512 in the prior quarter and 16,433 a year ago. Average trailing 12-month production, or fees and commissions in the quarter, was $915,000 per advisor, up from $905,000 in Q1 but down from $965,000 a year ago.
Read more coverage of the Q2 2012 earnings season at AdvisorOne.