Surge in earnings for Bank of America

<p>A fall in legal bills has boosted Bank of America.</p>

Bank of America has announced it has seen its earnings surge on the back of a fall in the legal bills it has been forced to pay.

Its latest financial data shows that it made a profit of $2.5 billion (£1.6 billion) in the third quarter of the year.

This was a big jump on the figures for the July-September period in 2012, when the bank made only $340 million in profits.

Legal expenses of $1.1 billion were reported by the company, which are down from the figure of $1.6 billion announced by Bank of America last year.

Chief executive Brian Moynihan explained that staff cuts and a change in the bank's management structure have helped it in the last few months.

He said: "The economy and business climate will improve even more quickly as conditions normalise and we are well positioned to benefit from that."

Despite the firm's improved financial position, the results fell below the expectations of analysts and the bank's share price is down today as a result.

At 15:12 BST on the Nasdaq, shares in the bank were trading 0.82 per cent down for the day.

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