Bank of AmericaBank of America reported second-quarter net income of $4.012 billion, or 32 cents a share, increasing from $1.483 billion, or 10 cents a share, in the first quarter, and $2.463 billion, or 19 cents a share, during the second quarter of 2012. The company's second-quarter net revenue came in at $22.949 billion, compared to $23.408 billion the previous quarter, and $22.202 billion a year earlier. The consensus among analysts was for the nation's second-largest bank by assets to report second-quarter earnings of 25 cents a share on revenue of $22.759 billion. Bank of America had originally reported a first-quarter profit of $2.623 billion, or 20 cents a share, but on April 19 restated its quarterly results to include $1.6 billion in pretax charges related to settlements with MBIA ( MBI) and other monoline insurers. The operating earnings improvement mainly reflected a decline in total noninterest expense to $16.018 billion in the second quarter from $19.500 billion the previous quarter and $17.048 billion a year earlier. The sequential expense decline reflected the MBIA settlement. Other major areas for cost savings included personnel expenses, declining to $8.531 billion during the second quarter from $8.729 billion a year earlier, and professional fees, which declined to $694 million in the second quarter from $922 million in the second quarter of 2012. The bank also said its legacy mortgage loan servicing expenses declined by roughly $250 million during the second quarter from the first quarter. The company also reduced its full-time staff by over 2% during the second quarter, mainly from reductions in mortgage loan servicing employees and "staff associated with consumer delivery network optimization." Bank of America said outstanding mortgage repurchase claims against the company totaled $16.6 billion as of June 30, down from $17.1 billion the previous quarter, mainly reflecting the MBIA settlement.
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