Bank of America Corp. eked out a $340-million profit for the third quarter after earmarking another $1.6 billion for legal costs, but revenue fell by 28%.
The Charlotte, N.C., bank, sent reeling by its 2008 acquisition of Calabasas mortgage lender Countrywide Financial Corp., said the latest charges were for settling lawsuits stemming from its other big takeover target that year: Merrill Lynch & Co.
Former BofA Chief Executive Ken Lewis engineered the deals at the end of a decades-long expansion spree. His successor, Brian Moynihan, has been scaling back many operations in an effort to create a leaner and more profitable company, including drastically curtailing BofA’s mortgage business, once the nation’s largest.
Issuing its quarterly financial report, the bank said Wednesday morning that it earned $340 million, less than a penny a share, during the latest quarter, down from a year-earlier profit of $6.2 billion, or 56 cents a share. Revenue fell from $28.5 billion to $20.4 billion.