Bank of America still struggling in USA during Q2
CHARLOTTE -- Bank of America's better than expected second-quarter profit was boosted by the bank's foreign operations.
In its quarterly report filed with the Securities and Exchange Commission, the bank said Monday it lost $255 million in the United States, as losses from failed loans continued to rise.
Bank of America's non-U.S. operations generated $3.48 billion profit, including the gain. Its Asia operations brought in nearly $3.58 billion during the quarter, while its Latin America and Caribbean operations made $93 million, and Canadian operations saw a $50 million profit. Operations in Europe, the Middle East and Africa lost $242 million.
The results show the struggles the bank, like others, still faces as it tries to build a global business. Bank of America has about 55 million consumer and small-business customers, making it vulnerable to delinquencies and defaults, yet also ready to thrive when the economy recovers.
Bank of America said it recorded a $13.4 billion provision for loan losses during the second quarter as consumers struggled with debt amid rising unemployment, compared with $5.8 billion a year ago.
On a conference call with analysts last month, Bank of America CEO Ken Lewis said "profitability in the second half of the year will be much tougher than the first half," given the absence of several one-time items that were positive to earnings including the China Construction Bank stock sale.
The bank has received $45 billion in bailout funds as part of the Treasury Departments $700 billion financial rescue package. It's not known when it will repay the government.
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