Banking, finance, and taxes
Charges Hammer Bank of America Earnings
Published:
Last Updated:
For the full year, the bank reported EPS of $0.25 on revenues of $84.24 billion. A year ago it reported EPS of $0.01 on revenues of $94.43 billion. The consensus estimate called for EPS of $0.24 on revenues of $86.9 billion.
Bank of America’s CEO looked to the coming year for solace:
We enter 2013 strong and well positioned for further growth. Double-digit growth since last year in mortgage production, commercial lending, and Global Markets revenue demonstrates the power of deeper customer and client relationships as we intensify the focus on connecting all our capabilities.
Fourth-quarter results were dragged down by a litany of charges that included a $2.7 billion charge on an $11.6 billion settlement with Fannie Mae related to loans made by Countrywide Financial, which Bank of America acquired in 2008. Another $2.5 billion was related to settling foreclosure missteps. All told, the bank charged off more than $7 billion in the fourth quarter.
For the full year, the consensus estimates call for EPS of $0.97 on revenues of $90.73 billion. For the first quarter of the new year, the consensus estimate for EPS is $0.22 on revenue of $23.41 billion.
Shares are down about 0.9% in premarket trading this morning, at $11.68 in a 52-week range of $6.44 to $12.20. Thomson Reuters had a consensus analyst price target of around $12.00 before today’s results were announced.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.