BoA’s Q4 Loss drags down year
(21 January 2009 – USA) Bank of America (BoA) has recorded a fourth quarter loss, which has dragged down its full year profit to a third of what it was one year ago.
BoA reported a full-year 2008 profit of US$4.01 billion compared with net income of US$14.98 billion a year earlier.
In the fourth quarter of 2008, the bank recorded a net loss of US$1.79 billion compared with net income of US$268 million a year earlier.
BoA’s Global Consumer and Small Business Banking and Global Wealth and Investment Management were profitable, paced by Bank of America's expanding deposit business.
Negative results in Capital Markets and Advisory Services masked the profitability in Business Lending and Treasury Services within Global Corporate and Investment Banking.
The bank said that the results reflect the increasing intensity over the last three months of the year of both the economic recession and challenging environment.
Over the full year, revenue increased 8 percent to US$73.98 billion from US$68.58 billion a year earlier, buoyed by net interest income, which was up due to consumer and commercial loan growth, the favourable rate environment and the acquisition of Countrywide and LaSalle.
Results include Countrywide Financial, which Bank of America purchased on July 1, but not Merrill Lynch, which was acquired on January 1, 2009.
Future results will be hit by the Merrill acquisition. Merrill Lynch preliminary results indicate a fourth-quarter net loss of US$15.31 billion, although BoA will receive government support for further losses.
In the fourth quarter of 2008, the bank recorded a net loss of US$1.79 billion compared with net income of US$268 million a year earlier.
BoA’s Global Consumer and Small Business Banking and Global Wealth and Investment Management were profitable, paced by Bank of America's expanding deposit business.
Negative results in Capital Markets and Advisory Services masked the profitability in Business Lending and Treasury Services within Global Corporate and Investment Banking.
The bank said that the results reflect the increasing intensity over the last three months of the year of both the economic recession and challenging environment.
Over the full year, revenue increased 8 percent to US$73.98 billion from US$68.58 billion a year earlier, buoyed by net interest income, which was up due to consumer and commercial loan growth, the favourable rate environment and the acquisition of Countrywide and LaSalle.
Results include Countrywide Financial, which Bank of America purchased on July 1, but not Merrill Lynch, which was acquired on January 1, 2009.
Future results will be hit by the Merrill acquisition. Merrill Lynch preliminary results indicate a fourth-quarter net loss of US$15.31 billion, although BoA will receive government support for further losses.
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