United States’ biggest bank reported a $5.2 billion loss in the fourth quarter. This loss was a result of the company’s decision to return the bailout money it had received from the government. However Bank of America reported a net income of $ 6.3 for full year of 2009. This was a welcome sign as the income rose as compared to net income of $4.0 billion in 2008.
The main concern for the corporation was as usual, the consumer loans that washed away much of the profits coupled with the repayment of $45 billion which the company received through Troubled Asset Relief Program, TARP.
If one excludes this one time charge, the bank would have reported a loss of just $194 billion, which would have been minimal as compared to $1.8 billion loss during the same period a year ago.
During the fourth quarter, Bank of America helped more than 400,000 people to either purchase new homes or refinance their existing mortgages. This was done by funding $86.6 billion in first mortgages. In 2009, Bank of America helped 460,000 customers by providing home ownership retention help. Out of this, 260,000 loan modifications consist of total unpaid principal balances of approximately $55 billion. The bank extended $756 billion in credit. According to preliminary data, this included $208 billion in commercial renewals. The data for new credit was as follows-
|
Category |
Amount |
|
First Mortgages |
$378 billion |
|
Commercial non-real estate |
$282 billion |
|
Commercial real estate |
$39 billion |
|
Domestic consumer + small business card |
$18 billion |
|
Home Equity products |
$13 billion |
|
Other consumer credits |
$26 billion |
In 2009, Bank of America helped around 146,000 small businesses by lending $14 billion in credit, out of which $12 billion was extended for business banking. The bank pledged to increase the lending to small and medium scale businesses in 2010, by at least $5 billion. Average retail deposits during the fourth quarter increased by 15% over the last year, amounting to $89.9 billion.
Revenue net of interest expanse rose to $120.9 billion over last year statistics of $74 billion. The net interest income was $48.4 billion as compared to last year’s $46.6 billion. This was based on a fully taxable-equivalent. Non-interest income rose as high as $72.5 billion from $27.4 billion in 2008. Pretax merger and reconstructing charges too rose enormously from $2.7 billion as compared to 2008 data of $935 million.
