Bank of America reports $1 bn loss in Q3
The total loss for shareholders was even larger, at $2.24 billion, or 26 cents per share, worse than had been expected by most analysts. Top 20 Global Banks
By Agencies |
CHARLOTTE: Bank of America Corp posted its second quarterly loss in less than a year as it suffered from consumer credit losses. (Watch)
The nation's largest bank reported a net loss of $1 billion, or 26 cents per share, for third quarter, compared with net income of $1.18 billion, or 15 cents per share, in the same period last year at the height of the financial crisis.
The total loss for shareholders was even larger, at $2.24 billion, or 26 cents per share, worse than had been expected by most analysts.
Bank of America's latest quarterly results come as U.S. consumers, who compromise roughly 60 percent of the bank's loan portfolio -- from home mortgages to credit cards -- are showing signs of continued weakness and an inability to repay debt.
The largest US bank by assets said its results were "negatively impacted by continued weakness in the US and global economies and stress on the consumer, which continues to result in high credit costs."
The company paid special dividends of 1.2 billion dollars, including 893 million to the US government for its capital injections.
The bank's Merrill Lynch unit made a positive contribution in the latest quarter. Bank of America said the unit boosted its overall results.
Bank of America shares fell 3.6 percent to $17.45 in premarket trading.
The shares rose 29 percent during third quarter, keeping pacing with the broader KBW Banks Index. But the shares are down 23 percent over the past 12 months.
The nation's largest bank reported a net loss of $1 billion, or 26 cents per share, for third quarter, compared with net income of $1.18 billion, or 15 cents per share, in the same period last year at the height of the financial crisis.
The total loss for shareholders was even larger, at $2.24 billion, or 26 cents per share, worse than had been expected by most analysts.
Bank of America's latest quarterly results come as U.S. consumers, who compromise roughly 60 percent of the bank's loan portfolio -- from home mortgages to credit cards -- are showing signs of continued weakness and an inability to repay debt.
The largest US bank by assets said its results were "negatively impacted by continued weakness in the US and global economies and stress on the consumer, which continues to result in high credit costs."
The company paid special dividends of 1.2 billion dollars, including 893 million to the US government for its capital injections.
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The bank's Merrill Lynch unit made a positive contribution in the latest quarter. Bank of America said the unit boosted its overall results.
Bank of America shares fell 3.6 percent to $17.45 in premarket trading.
The shares rose 29 percent during third quarter, keeping pacing with the broader KBW Banks Index. But the shares are down 23 percent over the past 12 months.
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