BofA reports $70m loss on legal charge

NEW YORK, Oct 15 (AFP): Bank of America (BofA) Wednesday reported a third-quarter loss due to a large mortgage-securities settlement, even as the financial giant scored gains in four of five operating divisions.

The second-largest US bank by assets notched a net loss of US$70 million due to a previously announced $5.3 billion charge following a record mortgage-securities settlement with the US Department of Justice in August.

BofA's results translated into a loss of 1.0 cent per share, well below the average analyst estimate of nine cents.

But non-legal expenses fell by $1.2 billion, due in part to a smaller workforce.

And better results in most operating divisions drew positive commentary from analysts.

"Behind the noise, it appears to be a solid quarter for BofA with stabilizing revenues and continued progress on expense initiatives," said RBC Capital Markets.