News Column

BofA 3Q Earnings in the Black, but I-Banking Falters

Oct. 18, 2011
bank of america, earnings

New York (dpa) - Bank of America's third quarter companywide earnings swung into the black, the company reported Tuesday.

However, euro-debt uncertainties forced a loss in the U.S. mega bank's investment banking division, which lost $302 million (220 million euros) in the quarter ending September 30, 2011.

The division earned a profit of $1.5 billion in the same quarter last year.

The firm's $4.5 billion pretax profit was due mainly to profits from a $3.6 billion of shares of China Construction Bank (CCB), and a $1.7 billion pretax gain in trading Debit Valuation Adjustments (DVA).

Private equity and other investments accounted for a $2.2 billion loss.

A sluggish U.S. housing market, combined with a high unemployment rate and coupled with domestic and European sovereign credit uncertainties, weighed on the bank, CEO Brian Moynihan said in Tuesday's release.

During the third quarter of 2010, the bank lost $7.6 billion. In the fourth quarter of 2010, its losses deepened to $9.1 billion - a record - due to writedowns of uncollectable credit card and mortgage debts.

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Source: Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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