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More on BofA (BAC): Net interest income -14.9% Y/Y as net interest margin declines 30 bps to...

More on BofA (BAC): Net interest income -14.9% Y/Y as net interest margin declines 30 bps to just 2.21%. Cost-cutting: Non-interest expenses -11% sequentially, and -25.8% Y/Y. Reserve release accounted for $0.11 (vs. $0.07 expected) of $0.19 earnings for the quarter. Tier 1 capital ratio under Basel III of 8.1%. Shares +2% premarket. (PR)

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Comments (5)
  • bbro
    , contributor
    Comments (10268) | Send Message
     
    Does anybody in the financial media understand the accounting for
    loan loss reserves and what precipitates a loan loss reserve release??
    18 Jul 2012, 07:37 AM Reply Like
  • turtleuofs
    , contributor
    Comments (183) | Send Message
     
    Probably not. People love headlines, though.
    18 Jul 2012, 09:14 AM Reply Like
  • MichaelZZ
    , contributor
    Comments (232) | Send Message
     
    There should be a "formula", i.e., calculation, based upon rational and consistent statistical parameters.

     

    mz
    18 Jul 2012, 07:45 AM Reply Like
  • Conquestador
    , contributor
    Comments (4) | Send Message
     
    dont worry be happy.
    18 Jul 2012, 08:48 AM Reply Like
  • Lqlax87
    , contributor
    Comments (86) | Send Message
     
    It simply means that they accounted for a loss and it didn't happen so the loss reserve amount was released. It actually should indicate a good thing
    18 Jul 2012, 04:44 PM Reply Like
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