Daily News: January 16, 2014

Bank of America Q4, FY Earnings Surge as Losses Tumble

Bank of America reported Q4/13 net income of $3.4 billion compared to $732 million in the year-ago period. The bank said its provision for credit losses in the fourth quarter was $336 million, down from $2.20 billion or $1.87 billion compared to the same quarter a year earlier as credit quality continued to improve – net charge-offs were down 49%.

For the year ended December 31, 2013, net income increased to $11.4 billion from $4.2 billion in 2012. Full year provision charges of $3.56 billion were down from $8.17 billion or $4.61 billion in 2012 as net charge-offs of $7.9 billion were down over $7.0 billion from $14.9 billion a year earlier.

“We are pleased to see the core businesses continue to perform well, serving our customers and clients,” said Chief Executive Officer Brian Moynihan. “While work remains on past issues, our two hundred forty thousand teammates continue to do a great job winning in the marketplace.”

“We enter this year with one of the strongest balance sheets in our company’s history,” said chief financial officer Bruce Thompson. “Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum.”

To read the entire Bank of America press release click here.