Friday, January 28, 2011
Bank of America Reports Fourth-Quarter and 2010 Financial Results
CHARLOTTE, N.C. - Tuesday, January 25th 2011 [ME NewsWire]
Fourth-Quarter Net Loss of $1.2 Billion, or $0.16 per Diluted Share, Includes Goodwill Impairment Charge of $2.0 Billion
Excluding Goodwill Impairment Charge, Fourth-Quarter Net Income Was $756 Million, or $0.04 per Diluted Share1
2010 Net Loss of $2.2 Billion, or $0.37 per Diluted Share, Includes Goodwill Impairment Charges of $12.4 Billion
Excluding Goodwill Impairment Charges, 2010 Net Income Was $10.2 Billion, or $0.86 per Diluted Share1
Deposits Rose to a Record $1 Trillion at Year-End
Company Continues to Build Capital and Strengthen the Balance Sheet
Credit Costs Decline Significantly as Economy Continues to Improve
Global Wealth and Investment Management Reports Record Asset Management Fees in the Fourth Quarter
Investment Bank Ranked No. 2 Globally and No. 1 in the U.S. in Revenues for 2010
CHARLOTTE, N.C.--(BUSINESS WIRE)-- Bank of America Corporation today reported a net loss of $1.2 billion, or $0.16 per diluted share, for the fourth quarter of 2010, including the previously announced goodwill impairment charge of $2.0 billion in the Home Loans and Insurance segment. Excluding the goodwill impairment charge, the company earned $756 million, or $ 0.04 per share.
1 Excluding the goodwill impairment charge from certain financial measures represents a non-GAAP measure. For reconciliation to GAAP measures, refer to page 25 of this press release.
Results for the most recent quarter also include a $4.1 billion provision expense for outstanding and future mortgage repurchase claims, including the previously announced $3.0 billion related to the Government Sponsored Enterprises (GSEs). Also included in the company’s fourth-quarter results are $1.5 billion in litigation expenses, excluding fees paid to external legal service providers, primarily in the company’s consumer businesses, and lower sales and trading revenues. These factors were partially offset by the continued reduction in credit costs, approximately $360 million in net gains from the sale of non-core assets, and a $1.2 billion income tax benefit from a valuation allowance release.
For the year, Bank of America had goodwill impairment charges of $12.4 billion, which resulted in a net loss of $2.2 billion, or $0.37 per diluted share. Excluding the goodwill impairment charges, the company earned $10.2 billion, or $0.86 per diluted share.
During the year, the company also recorded $2.6 billion in litigation expenses, $6.8 billion in representations and warranties provision and $321 million in gains related to legacy assets as it made significant progress resolving legacy issues.
Continue Reading: http://www.me-newswire.net/news/3016/en