Bank of America Beats, Profits Surge on Lower Legal Costs

Bank of America (BAC) reported strong earnings on Wednesday that beat estimates. Lower legal costs boosted profits as litigation expenses fell to $175 million for the quarter. CEO Brian Moynihan has worked hard to get the bank back into shape post financial crisis. He has cut the number of bank branches by 5 percent in the last year. The bank reported earnings of $0.45 per share, way up from last year's $0.19 per share. Revenue also beat estimates at $22.1 billion. Following its cost cutting scheme Bank of America now faces the difficult task of growing revenue while interest rates remain low. Shares of BAC are down around 4 percent since January but were up on the earnings news.