Bank of America Corp. (NYSE: BAC), one of the biggest U.S. banks, reported its fourth-quarter financial results. Shares of the Charlotte, North Carolina-based bank fell sharply in early trading following the release of quarterly results.
For the quarter ended December 31, 2012, BAC reported net income of $0.7 billion, or $0.03 per diluted share, down from $2 billion, or $0.15 per share reported for the same period in the previous year. Revenue, net of interest expense, was $18.9 billion for the quarter.
For the full year, Bank of America reported net income of $4.2 billion, or $0.25 per share, compared to $1.4 billion, or $0.01 per share reported in 2011.
BAC had earlier this month announced that its fourth-quarter results were negatively impacted by a provision of $2.7 billion related to settlements with Fannie Mae.
CEO Brian Moynihan said that the bank enters 2013 strong and well positioned for further growth. Moynihan further said that double-digit growth since last year in mortgage production, commercial lending, and the Global Markets revenue demonstrates the power of deeper customer and client relationships as the bank intensifies the focus on connecting all its capabilities.
Bruce Thompson, Bank of America’s CFO, said that BAC addressed significant legacy issues in 2012 and the bank’s strengths are coming through. Thompson noted that the bank’s capital and liquidity remain strong and credit continues to improve and its primary focus in 2013 is to grow revenue, manage expenses and drive core earnings growth.
BAC shares have fallen sharply in early trading today despite posting strong quarterly results. At last check, the stock was down 3.44% to $11.38 on volume of 85.99 million.
In the last one year, BAC shares have gained 75%, compared to a gain 14.33% for the S&P 500 in the same period.
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