Shares in Bank of America surged today after the lender surprised the market with second-quarter profits that fell less than had been expected.
Bank of America stock rose by 11 per cent in early New York trading, while the Dow Jones industrial average rose 31.7 points to 11,520.2.
Bank of America said net income fell 41 per cent to $3.41 billion (£1.7 billion), or 72 cents a share, from $5.76 billion, or $1.28 cents, last year.
Last week, both JP Morgan Chase and Citigroup delivered results above analysts’ forecasts, despite posting huge writedowns on assets linked to sub-prime mortgages. However, Merrill Lynch shocked investors with higher-than-expected write-offs.
Bank of America said its purchase on July 1 of Countrywide Financial, once the nation’s largest mortgage lender,