Bank of AmericaBank of America (BAC) beat analysts second quarter earnings estimates, as the nation's largest bank benefited from a fourth consecutive quarter of lower credit costs and the sale of non-core assets, the bank announced Friday.

Bank of America (BAC) reported revenues of $29.5 billion, compared with $33.1 billion the same time last year. The banking giant also reported net income of $3.1 billion, or 27 cents a share, compared with $3.2 billion a year ago.

Wall Street analysts had been expecting BofA to generate net income of 22 cents a share, according to Thomson Reuters. The banking giant came in a little shy of the $29.6 billion in revenues analysts expected it to make in the quarter.

BofA, however, noted that it posted declines in trading account profits, mortgage banking income and encountered increased costs associated with the United Kingdom payroll tax on certain year-end incentive payments.

Brian Moynihan, Bank of America CEO, in a statement:
Our quarterly results show that we are making progress on our strategy to align around our three core customer groups – consumers, businesses, and institutional investors – and create the financial institution that customers tell us they want, built on a broad relationship of clarity, transparency, and helping them manage through challenging times.

We improved our capital foundation through retained earnings, and credit quality improved even faster than expected. We have the most complete financial franchise in the world, and we are focused on executing our strategy and delivering outstanding long-term value to our customers and shareholders.

Two areas of concern that has Wall Street wringing its hands, as it relates to large U.S. banks, is whether credit losses will be shrinking and what affect will the newly passed financial reform act will have on large institutions, according to a research note by Credit Suisse analyst Moshe Orenbuch.

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