BAC in Black
Bank of America swung to a Q4 profit with earnings topping analyst estimates, sending shares higher on Thursday. The bank posted earnings of $0.15 per share, up from a loss of $0.16 in Q4/10, and beating the $0.13 Wall Street was expecting. Results were helped by improving credit conditions and the sale of assets as it looks to improve its capital base. During the quarter, the company set aside $2.9 billion for loan losses, well below the $5.1 billion set aside a year ago. Bank of America also benefitted from pre-tax gains of $5.3 billion from its sale of China Construction Bank and from the sale of debt securities as it looks to conform to Basel III requirements. Another regulatory issue, the Durbin Amendment which reduces debit card swipe fees, reportedly decreased the bank’s card services revenue by $430 million. In line with its peers, the bank is focused on cost cutting and under its Project New BAC; it expects to eliminate 30,000 jobs in the next few years. In Q4, the total number of full time employees dropped to 281,791 from 288,739 in the prior quarter.
Bank of America (BAC : NYSE : US$6.96), Net Change: 0.16, % Change: 2.35%, Volume: 489,380,533
Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.
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