Home News UPDATE: Bank Of America is still in a loss zone

UPDATE: Bank Of America is still in a loss zone


By Marshall Eckblad and Nathan Becker

NEW YORK (Dow Jones) – Bank of America has not moved on from the Financial crisis recovery. In the final quarter of 2009, the Institute recorded yet another Loss. In support of the Bank called on Wednesday, inter alia, higher credit costs. However, the loss of U.S. bank fell in the fourth Quarter, with net USD 194 million were substantially lower than last year, when he stood at 1.78 billion USD.

Per share, the Institute reported a decrease of $ 0.60 to $ 0.48 per Share. This result Dividends on preferred shares and the Costs for the repayment of U.S. government assistance totaling containing approximately 5 billion USD. This results in a loss of added approximately 5.2 billion USD. Thus the bank missed analysts’ expectations. These had an average of only a loss of $ 0.52 per NAV per share expected.

It is no different to the bank with the proceeds. But here she is lower than forecast returns. The recorded in the fourth quarter Revenue of 25.1 (15.7) billion USD, although mean an increase of 60% compared with the same quarter last year, but observers had approximately 26.8 billion USD expected. The higher revenue said the Bank of In parts of America with the acquisition of investment bank Merrill Lynch.

Are also increased credit losses. They increased to U.S. $ 10.11 billion from USD 8.53 billion the year before. The rate of failed Loans to total loans is taken on by 2.36% to 3.71% in Previous year.

For the full year 2009, the U.S. bank reported a net profit from 6.3 billion compared to $ 4 billion USD 2008th Including dividends for preference shares and the negative impact from the Repayment of 45 billion U.S. dollars, which the U.S. government as part of the Had bank bailout TARP program invests in preferred stock returns, the annual profit in a loss of 2.2 billion USD, or $ 0.29 per share.

The revenue for the full year amounted to 119.64 billion USD, compared with 72.78 billion USD a year earlier. This is an increase of around 63%.

"Looking at 2010, we are encouraged by the Signs of economic recovery, "said CEO Brian T. Moynihan. Nevertheless, remained the conditions difficult. The Charlotte-based Bank of America Corp. anticipates that the unemployment in a levels remain high. This consumer spending would be discouraged.

After the takeover offers from Merrill Lynch, Bank of America has a strong investment-banking division. Nevertheless, the Performance of the Institute heavily dependent on consumer and the economy. Above all, unemployment has a direct the monthly payment ability of the borrower.

Recorded in early trading on the American Stock Exchange, the Bank of America paper 0.18% slightly higher at 16.35 dollars. Up to and including Tuesday, the stock gained 8.4% in January to date.


Website: www.bankofamerica.com

- By Nathan Becker and Marshall Eckblad, Dow Jones Newswires
+49 (0) 69 29725 104, unternehmen.de @ dowjones.com

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January 20, 2010 09:54 ET (14:54 GMT)

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