The nation's second largest bank missed earnings estimates reporting net income of $2.3 billion, or $0.19 per diluted share, down from $4 billion last year. The Street expected $0.29 per share.
Revenue in the quarter fell 4% to $22 billion.
The bank's quarter was once again weakened by legal costs. Noninterest expense included $4 billion in litigation costs compared to last year's quarter where it was just $500 million. In total, noninterest expense jumped to $18.5 billion from $16 billion.
The quarter's legal costs include a major settlement with AIG for $650 million, the bank said. BofA noted that the deal resolves all outstanding residential mortgage backed securities litigation with AIG.
The bank says it's now resolved approximately 95% of the unpaid principal balance of all RMBS where RMBS securities litigation has been filed or threatened for all Bank of America-related entities.
Inside the bank, highlights include global wealth management where client balances increased 11% to a record $2.47 trillion. Revenue was also up slightly to $4.6 billion from $4.5 billion last year.
Global Banking reported net income of $1.4 billion in the second quarter of 2014, up slightly from last year.
BofA's trading unit put up a healthy quarter as Fixed Income, Currency and Commodities (FICC) sales and trading revenue, increased 5% from the second quarter of 2013 to $2.4 billion.
BofA CEO Brian Moynihan said, "The economy continues to strengthen, and our customers and clients are doing more business with us."
He added,"Among other positive indicators, consumers are spending more, brokerage assets are up by double digits and our corporate clients are increasingly turning to us to help finance business expansion and merger activity. We are well positioned for further progress."
