Bank of America Swings to Profit, Charges $2.2B Lower
Bank of America reported net income of $2 billion for the fourth quarter of 2011, compared with a net loss of $1.2 billion in the year-ago period. Revenue, net of interest expense, on a FTE basis rose 11% to $25.1 billion.
For the full year, the company reported net income of $1.4 billion compared with a net loss of $2.2 billion in 2010. Revenue, net of interest expense, on an FTE basis1 declined 15% to $94.4 billion.
Provision for credit losses in the fourth-quarter 2011 and full year were $2.9 billion and $13.4 billion, respectively, compared to $5.1 billion and $28.4 billion for the same periods in 2010
The bank noted that total average commercial and industrial loan balances increased 13% from the fourth quarter of 2010. Small business loan originations and commitments were up approximately 20% in 2011 and more than 500 small business bankers were hired in 2011
“We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,” said chief executive officer Brian Moynihan. “We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients.”
To read the full text of the Bank of America news release, click here.