According to Topix.Net Bank of America Corp. posted its first profit decline in years on Monday, missing Wall Street’s expectations as consumer bankruptcies and weaker trading results cut into its fourth-quarter earnings.
Shares of the nation’s second-largest bank slipped after the results were announced.
Bank of America’s shares dropped 23 cents, or 0.5 percent, to $43.96 at the close of regular trading on the New York Stock Exchange.
The Charlotte-based bank said net income for the quarter totaled $3.77 billion, or 93 cents per share, down from $3.85 billion, or 94 cents per share, a year earlier.
Excluding merger and restructuring charges of $59 million before taxes from its acquisition of FleetBoston Financial Corp., which closed in April 2004, Bank of America would have earned 94 cents a share in the latest quarter.
Analysts polled by Thomson Financial had forecast earnings of $1.02 a share.
"The fourth quarter was the first one in a long time when we failed to meet our own expectations," Chief Financial Officer Alvaro de Molina told industry analysts in a conference call. "It’s fair to say we fell short of yours as well."
Revenue during the fourth quarter grew to $14.12 billion from $13.71 billion last year - also below Wall Street projections of $14.52 billion.
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As a customer of Bank of America (credit card), I think there is definitely a small-scale consumer backlash against bank mergers. I had first signed up with BankBoston (which had been BayBank), which got bought out by Fleet, then bought out by Bank of America. Can you imagine all the wasted branding money from all those companies that are now no more? And how can you have a relationship or trust in an institution that will likely not be there in a day? After all, it’s a bank, not the phone company. You’re trusting it with your money.
Comment by Joel — January 30, 2006 @ 6:47 pm