Bank of America Profit Tumbles 32% as Boycott takes a Chunk!
Posted on Friday, October 26 @ 07:52:22 EDT
Topic: Boycott Bank of America
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 ALIPAC NOTE: Bank of America is feeling the impact of the historic boycott launched by over 100 organizations in the NIIBC (National Illegal Immigration Boycott Coalition) seven months back due to BofA's issueance of credit cards to illegal aliens. For more information, click on the boycott logo on the right --->
The Boycott Website is at www dot bankofamericaboycott.com
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Bank of America Corp, the second-largest U.S. bank,
posted a much larger-than-expected 32 percent drop in quarterly profit
on Thursday, hurt by mounting credit losses and dismal investment
banking results.
The news, the latest in a series of disappointing bank results, dampened confidence about the health of the U.S. consumer and the economy.
Stocks fell, bond prices rose, and the dollar tumbled to a record low
against the euro. Expectations rose that the Federal Reserve will cut
interest rates this month.
"We knew the credit situation was going to be bad, but this was worse
than expected," said Michael Mullaney, who helps invest $10 billion at
Fiduciary Trust Co. in Boston and owns the bank's shares.
"What causes us concern is the increase in reserves doesn't appear aggressive, and the bank
may need to reserve more in the future, which hits earnings," he said.
"The real surprise was investment banking, where revenue plunged."
Topics: illegal immigration, illegal aliens, Bank of America, Boycott, credit cards, laws, aid, profits, losses, customers leaving, Americans, mortgages, transfers
Thursday, October 18, 2007
Newsmax.com
Bank
of America's third-quarter net income fell to $3.7 billion, or 82 cents
per share, from $5.42 billion, or $1.18 a share, a year earlier.
Excluding one-time items, profit was 84 cents per share, according to
Reuters Estimates, below analysts' average forecast of $1.06.
Corporate and investment banking profit sank 93 percent to $100
million, from $1.43 billion, as revenue sank 44 percent. Results were
hurt by a surprise $607 million trading loss, $247 million of
write-downs for leveraged and other loans, and a $527 million loss from
structured products, including mortgage debt.
Shares of Bank of America fell $1.80, or 3.6 percent, to $48.23 in morning trading on the New York Stock Exchange.
CEO DISAPPOINTED
Bank of America
joined Citigroup Inc, JPMorgan Chase & Co and other banks in
reporting losses related to leveraged loans, mortgages, consumer
credit, or a combination.
Quarterly profit fell 57 percent to $2.38 billion at Citigroup, which
lost $636 million from fixed-income trading. Profit rose 2 percent to
$3.37 billion at JPMorgan.
"While the significant dislocations in the capital markets have hurt
most participants, we are still very disappointed in our third-quarter
performance," Bank of America Chief Executive Kenneth Lewis said in a statement.
The bank's results were a surprise given that its investment bank is smaller, relative to the company's size, than Citigroup's or JPMorgan's, and because the bank is not involved in some riskier markets, including subprime mortgage lending.
Nevertheless, the bank generates a greater portion of its business domestically, leaving it more exposed to declining economic conditions.
Bank of America
said it set aside $2.03 billion for credit losses, up more than 73
percent from a year earlier, and nonperforming assets doubled to $3.37
billion. It cited weakened housing conditions for some of the
increases.
"Rising nonperforming assets would argue for a continued increase in
reserves," said Chris Hagedorn, who helps invest $22.4 billion at Fifth
Third Asset Management in Cincinnati.
CONSUMER PROFIT FALLS
Revenue fell 12 percent to $15.93 billion, the bank said. Analysts on average expected $18.01 billion.
Return on equity fell to 11.02 percent from 16.64 percent.
Profit from consumer and small-business banking, the bank's main business, fell 16 percent to $2.45 billion.
Lending income was little changed at $8.62 billion, as net interest
margin fell to 2.61 percent from 2.73 percent a year earlier, though it
rose from 2.59 percent in the second quarter.
Consumer and business banking profit may rise in future quarters following the bank's $21 billion purchase on October 1 of ABN AMRO Holding NV's LaSalle Bank.
Wealth and investment management profit rose 17 percent to $599
million, helped by the $3.3 billion purchase three months ago of
Charles Schwab Corp's US Trust private banking business.
The bank ended the quarter with $1.58 trillion of assets.
As of Wednesday's close, Bank of America shares had fallen 6 percent this year, compared with a 12 percent drop in the Philadelphia KBW Bank Index .
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