Bank of America reports $8.8bn loss
New York, July 19, 2011
Bank of America Corp posted a second-quarter net loss after an $8.5 billion settlement with mortgage bond investors.
The largest US bank by assets on Tuesday reported a net loss of $8.8 billion, or 90 cents per share, compared with net income of $3.1 billion, or 27 cents per share, a year earlier.
Analysts on average expected a loss of 90 cents per share, according to Thomson Reuters I/B/E/S.
On June 29, the bank announced it would take a series of big one-time charges in the quarter related to a settlement with private investors who demanded the the bank repurchase toxic home loans held in mortgage-backed securities.
Excluding the charges, the bank reported net income of $3.7 billion, or 33 cents per share, for the second quarter.
Revenue tumbled 54 percent to $13.5 billion, due to a $14 billion provision taken as part of the mortgage settlement. Excluding that provision, revenue totaled $26.5 billion.
BofA shares fell 2.8 percent to $9.72 on Monday and have declined 27 percent this year, compared with a 12 percent drop in the KBW Banks Index. - Reuters