Join        Login             Stock Quote

Bank Of America (BAC) 4Q Profit Down 63 Pct, Revenue Misses

 January 17, 2013 07:29 AM

(By Balachander) Bank of America Corp. (NYSE: BAC) said fourth-quarter earnings declined 63 percent reflecting lower revenue and settlements with Fannie Mae.

The Charlotte, North Carolina-based bank earned $732 million or $0.03 per share, down from $1.99 billion or $0.15 per share in the year-ago quarter.

The bank said quarterly results were negatively impacted by a provision of $2.7 billion related to the settlements with Fannie Mae with respect to representations and warranties and compensatory fees. The year-ago quarter included $1.3 billion of negative debit valuation adjustments (DVA) and fair value option (FVO) adjustments.

[Related -Bank Stocks: The Misbegottenness of the Volcker Rule Truly Knows No Bounds]

Total revenue fell 25 percent to $18.66 billion. On a fully taxable-equivalent (FTE) basis and excluding items, total revenue declined 26 percent to $19.61 billion as noninterest income dropped 43 percent.

Wall Street analysts, on average, expected the bank to earn 2 cents a share on revenue decline of 15.50 percent.

Provision for credit losses declined 25 percent from the year-ago period, while increasing 24 percent from the prior quarter.

In the previous quarter, the bank reported break even earnings per share on revenue of $20.66 billion.

As of Dec. 31, 2012, BAC's Basel 3 Tier 1 common capital ratio on a fully phased-in basis was estimated at 9.25 percent, up from 8.97 percent at Sept. 30, 2012.

BAC shares, which have been trading in the 52-week range of $6.44 to $12.20, closed Wednesday's regular trading at $11.78.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.