NightBlogger

The nation’s second-largest bank by assets said Monday its profit fell 41 percent, as losses in its struggling mortgage operations were offset by business in other parts of the company. The company more than tripled the amount it set aside for bad loans to $5.83 billion, up from $1.81 billion a year ago, largely for consumer and commercial portfolios directly tied to the housing market, including home equity, residential mortgages and homebuilding. The figure surged to $6.01 billion in the first quarter. Net charge-offs, loans it doesn’t think are collectable, jumped to $3.62 billion, up from $1.5 billion a year ago, reflecting housing market deterioration and slowing economic conditions, the company said. Bank of America has said it plans to cut about 7,500 jobs as it integrates the company into its own operations. The job cuts amount to about 12.5 percent of the combined companies’ mortgage, home equity and insurance businesses. More

Tags: 50 percent, BofA 2Q profit, shrinks