Financial Report Financial reports from the largest companies of the world

Bank of America with 7.3 billion loses for the quarter

The largest U.S. bank - Bank of America, announced a loss of 7.3 billion dollars for the third quarter because of high costs associated with implementation of new rules of financial regulators in the U.S. in terms of consumer bank accounts and credit cards. The shares of financial giant cheaper by two percent in the hours before the start of the regular trading session on the New York Stock Exchange. The loss, which accounted for one share in the third quarter amounted to 77 cents. A year ago, Bank of America announced a loss of $ 1 billion, or 26 cents a share. If we exclude the exceptional income and expenses, the financial results of Bank of America for the past quarter was positive and amounted to 3.1 billion dollars, or 27 cents a share. This was more than forecast by analysts of 14 cents per share. The revenues of the bank without interest expense increased by 2% yoy to 26.98 billion dollars. Big loss for the third quarter due to the voluntary provision of 10,4 billion dollars, which Bank of America has set aside because of expectations that the laws on consumer protection relating to banking and adopted by the government this year, may reduce by up to 80% of the revenues of the bank debit cards. JPMorgan, the second largest U.S. bank in assets, announced a profit of 4.42 billion dollars for the third quarter. Citigroup, the third largest, came to 2.17 billion dollars profit.
The market capitalization of Bank of America from 123.8 billion ranks it behind JPMorgan and Wells Fargo among large financial companies in the U.S.. Shares of Bank of America fell 8.8 percent in the third quarter amid concerns that U.S. recession may be repeated. The shares of JPMorgan have increased by 4% during this period, while those of Citigroup has added 3.7 percent. Bank of America ranks first in U.S. deposits and assets, and the second highest number of issued credit cards and mortgages. The acquisition of Merrill Lynch in January 2009 supported the Bank's activities in the field of corporate and investment banking.