Bank of America reports big first-quarter profit

April 18, 2010 No Comments »

Bank of America has proven to be amongst the winners of 2008′s bank collapse, reporting strong quarterly revenue growth yet again last week.  Although it still suffers losses from failed consumer loans it has managed to offset this with positive revenue from trading in securities including bonds, currencies and commodities.

In a recent Yahoo Finance article, Bank of America CEO, Brian Moynihan said, “the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy.”

If you happened to roll the dice with Bank of America last March (2009) by purchasing shares of their stock, you would have incurred gains of over 400% in one year’s time. Last spring B of A saw it’s shares drop to below $3.60 and at the end of the trading day Friday, they were sitting at $18.41 per share (although they dipped roughly 5.5% on that day).

Bank of America Facts:

- B of A’s earnings rose 0.7 percent to $2.83 billion from $2.81 billion a year earlier.

- They earned 28 cents per share after paying preferred dividends. That compared with 44 cents per share a year ago. Revenue totaled nearly $32 billion in the quarter.

- Bank of America set aside $9.8 billion to covered soured loans during the quarter, down 3 percent from $10.1 billion the previous quarter.

- Last Friday, Bank of America’s stock fell $1.07, or 5.5 percent, to $18.41 as the broader market also fell.

- Bank of America set aside less money for overall loan losses than in previous quarters, it increased the amount set aside for home mortgage loans, to $3.6 billion, as mortgage losses widened.

- The bank reported a $2.1 billion loss in its home mortgage business.

- It had income of $952 million for its credit card business, compared to a loss of $1.8 billion in the year-ago period.

- Bank of America reported that income from its global banking and markets business, which includes the Merrill Lynch investment banking operations, rose $709 million to $3.2 billion.

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