The bank earned USD 3.05 billion, or 25 cents a share, for the three-month period ending in December, compared with a profit of USD 3.44 billion, or 29 cents a share, a year earlier.

It had three one-time items that lowered its quarterly earnings by seven cents a share. Those items were tied to the valuation of the bank's debt and other underlying securities.

Rival banks have also readjusted the value of similar items to deal with new accounting rules following the financial crisis.

Total revenue at Bank of America fell 12.6 percent to USD 18.96 billion. The results fell short of estimates, with analysts surveyed by FactSet expecting earnings of 31 cents a share on revenue of USD 21.08 billion.

Like JPMorgan Chase, who reported its results yesterday, Bank of America reported a drop in quarterly fixed-income trading revenue to USD 1.5 billion from USD 19 billion a year earlier. The decline was tied to a slowdown in client trading activity, the bank said.

For the full year, Bank of America earned USD 3.79 billion, a drop from USD 10.08 billion in 2013. Most of that drop in profit came from legal expenses of USD 16.4 billion, primarily a result of BofA settling lawsuits and investigations into its role in the housing bubble and financial crisis.

Shares of Bank of America Corp. fell 59 cents, or 3.7 percent, to USD 15.46 in morning trading. The bank's shares are down more than 9 per cent over the past year.

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