BANK OF America has reported improved fourth-quarter net income of $2 billion and executives pledged to accelerate the pace of capital building, helping drive the battered share price to its best level since October.

The bank posted earnings of 15 cents a share yesterday compared with a loss of $1.2 billion, or 16 cents a share, in the same period in 2010.

Revenue rose 11 per cent to $25.1 billion.

The bank has struggled to escape from toxic mortgage losses and litigation, largely the result of its disastrous acquisition of Countrywide, the mortgage issuer, at the height of the crisis.

Chief executive Brian Moynihan has been shrinking assets to bolster capital levels and said the company should reach a core “tier one common equity” capital ratio of 7.25-7.5 per cent by the year-end, compared with an earlier target of 6.75-7 per cent.

Bank of America suffered sharp revenue declines and, like Citigroup, its investment bank fell into a loss. – Copyright The Financial Times Limited 2012