Bank of America Reports 2Q2012 Financial Results

Bank of America has reported financial results for the second quarter 2012.

Noninterest income declined $510 million to $2.6 billion, primarily from the implementation of debit card interchange fee rules as a result of the Durbin Amendment and a gain on the sale of certain portfolios in the second quarter of 2011. Provision for credit losses, primarily within the Card Services business, increased $731 million from the year-ago quarter to $1.1 billion as portfolio trends began to stabilize. Net charge-offs declined to $1.7 billion in the second quarter of 2012 from $2.6 billion in the year-ago quarter.

The number of new U.S. credit card accounts opened in the second quarter of 2012 was up 7% from the year-ago quarter. During the second quarter of 2012, the number of BankAmericard Cash Rewards cards grew by 37% to 1.4 million.