Bank of America beats analysts' estimates, but sees credit woes ahead

Bank of America (BAC) reported Friday morning that profit in the second quarter slipped slightly but exceeded analysts' expectations -- yet mounting credit woes may dampen that superficially good news.

Net income of Bank of America fell 6 percent to $3.2 billion, or 33 cents a share, after removing the effect of paying some $805 million in dividends on preferred stock, the lion's share of which was held by the U.S. Government. That's compared with a $3.4 billion profit a year ago. Analysts had estimated the company would earn 18 cents a share.