Bank Of America Quarterly Profits Soar
Seeking Alpha Analyst Since 2013
Originally published at www.seclive.com
Bank of America Corporation (BAC) announced its financial results for the fourth quarter of fiscal year 2013, reporting a substantial profit increase from a year ago. The second-largest U.S. bank recorded a quarterly profit of $3.44B and $0.29 per share, up from $732M a year ago. The reason for the large disparity from year to year was due to the bank paying an $11.6B settlement with Fannie Mae. Revenue improved 15% to $21.49B, beating analyst expectations of $21.24B. Similar to its competitors, Bank of America mortgage originations declined 46% from a year ago, reflecting a further decline in mortgage demand. The company's consumer real-estate division, which includes mortgages, posted a loss this quarter of $1.06B, which was an improvement from the $3.7B net loss a year ago. Revenue from fixed income, currency, and commodities increased 16% to $2.1B while its consumer and business banking posted a profit of $1.97B, up from $1.45B a year ago.
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