INSTANT VIEW: Bank of America earnings fall

NEW YORK (Reuters) - Bank of America (BAC.N) on Friday posted a lower quarterly profit, as core results were hurt by a surge in troubled loans as more credit card and mortgage customers fell behind on payments.

Second-quarter net income applicable to common shareholders fell 25 percent to $2.42 billion (1.48 billion pounds), or 33 cents per share, from $3.22 billion, or 72 cents, a year earlier.

Excluding the impact of preferred stock dividends in both periods, profit fell 5 percent to $3.22 billion. Net revenue rose 61 percent to $32.77 billion, helped by the Merrill Lynch & Co acquisition.

Analysts on average expected profit of 29 cents per share on revenue of $33.26 billion, according to Reuters Estimates.

The following is reaction from industry analysts and investors:

MICHAEL HOLLAND, PRESIDENT OF HOLLAND & CO IN NEW YORK

"No surprise they're trading off a bit this morning, was concerned they couldn't continue the stretch of Goldman.

"0verall there is no other way to describe it the numbers than positive."

"We have a really ugly economic backdrop that these companies are faced with, jobless etc, those numbers aren't going to go away soon."