Bank of America posts $1.2bn loss in Q4

| January 21, 2011 | 0 Comments
Bank of America posts $1.2bn loss in Q4

The Bank of America has today reported its second consecutive quarterly loss - primarily due to the writedown of its mortgage business, Countrywide.

The bank, which is the largest in the US by assets, today disappointed analysts with a fourth quarter net loss of $1.24 billion (£775 million), compared with a $5.2 billion loss a year ago.

However, last year’s figures included the $4 billion charge related to the Government’s Troubled Asset Relief Program (TARP).

Commenting on today’s figures, chief executive Brian Moynihan, said: “Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us.”

However, excluding the writedown, the bank made a $756 million profit.

This week, other US banks have reported their fourth quarter results.

Morgan Stanley said fourth quarter profits surged by 60% – in line with forecasts.

The Wall Street bank said net profit came in at $600 million (£375 million) for the final three months of 2010, against a profit of $376 million a year ago.

Meanwhile, Goldman Sachs reported a $2.39 billion (£1.49 billion) profit for the three-month period, 53% lower compared with a year ago.

Citigroup reported a $1.3 billion (£811 million) profit for the fourth quarter of 2010, against a loss of $7.6 billion loss a year earlier.

Meanwhile, revenue surged to $18.4 billion, from $5.4 billion in the same period a year ago, but were 11% lower compared with the third quarter.

Finally, JPMorgan announced income surged 47% in the fourth quarter.

Fourth-quarter profit increased to $4.8 billion, or $1.12 a share, from $3.3 billion, or 74 cents a share, compared with the year ago period, said JPMorgan.

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