The bank said that the year-ago quarter included a total of $18.2bn in pretax charges for certain mortgage-related items and other selected adjustments, including provisions for representations and warranties and goodwill impairment.
Bank of America chief executive officer Brian Moynihan said lending to commercial businesses increased for the sixth straight quarter with small business lending and commitments up by 23% in a year and consumer credit is in the best shape in years.
"This quarter we surpassed 10 million mobile banking customers, up 34 percent in a year. With about 45,000 new mobile customers a week, we are adapting to meet customer needs and to do more with them," Moynihan added.
Consumer and Business Banking segment reported net income of $1.2bn, down $1.3bn from the year-ago quarter, due to lower revenue and higher credit costs while revenues for the segment also plummeted by $1.4bn to $7.3bn against the prior year quarter period.
BofA’s Consumer Real Estate Services segment registered a net loss of $768m for the quarter ended on 30 June 2012, versus a net loss of $14.5bn during the corresponding period earlier year.
Global Banking segment reported net income of $1.4bn, with shortfall of $515m from the year-ago quarter, due to lower revenues and provision expense benefit partially offset by a decline in noninterest expense.
Global Markets segment revenue fell by $1bn from the year-ago quarter to $3.4bn backed by lower trading volumes, new issuance activity and client flows.
Net income for Global Wealth and Investment Management segment grew by 6% to $543m from the year-ago quarter as lower revenue was more than offset by decreases in noninterest expense and lower provision for credit losses.
