Bank of America, Citigroup post profits, beating forecasts

Bank of America and Citigroup became the latest big banks with better-than-expected earnings.

• Bank of America (BAC) on Friday reported a $2.42 billion second-quarter profit even as losses from failed loans continued to rise.

• Citi (C) announced a $3 billion second-quarter profit instead of the big loss analysts expected.

BofA trading business improves

Bank of America said its earnings after payment of preferred dividends were down at 33 cents a share compared with a profit of $3.22 billion, or 72 cents a share, a year earlier. The earnings beat the forecasts of analysts surveyed by Thomson Reuters, who forecast Bank of America would earn 28 cents a share.