Bank of America profits up as credit improves

A Bank of America sign in New York

Related Stories

Bank of America has reported stronger-than-expected profits for the fourth quarter of 2013, helped by improving credit conditions.

The second largest US bank reported net income of $3.4bn (£2.08bn), up from $732m a year earlier.

The increase was largely due to a big reduction in the amount the bank set aside to cover bad debs.

Its provision for credit losses fell to $336m, compared with $2.2bn in the fourth quarter of 2012.

Revenue in the quarter rose to a better-than-expected $22.32bn, up from $19.6bn a year earlier.

"We enter this year with one of the strongest balance sheets in our company's history," said the bank's chief financial officer, Bruce Thompson.

"Capital and liquidity are at record levels, credit losses are at historic lows, our cost savings initiatives are on track and yielding significant savings, and our businesses are seeing good momentum."

Losses at the bank's consumer mortgage business, which was hit hard by the collapse of the housing market in the financial crisis, narrowed in the quarter. The unit lost $1.1bn, compared with a $3.7bn loss a year earlier.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

BBC Business Live

  1.  
    EASTER EGGS 06:25: Radio 5 live

    Are the walls of chocolate Easter eggs getting thinner? Yes, says Lee McCoy, editor of Chocolate Reviews, on 5 live. More shocking, there may be a shortage of the Easter treats. It seems Tesco have run out of a number of lines, especially eggs made by Cadbury and Nestle, as well as some Lindt and Mars eggs, the Daily Telegraph reports.

     
  2.  
    FOOTBALL 06:13: Radio 5 live
    Danny Mills, Robbie Savage, 2004

    More from Danny Mills. He's invested in a pasty company through private equity, but would he invest in football? Five-year contracts for staff (footballers) and the highest sporting wages in the world mean it's a game for "billionaires" he said. "You can't blame the footballers," he said, as anyone would take the money offered. Picture above shows Danny in his playing days, exchanging views with fellow BBC pundit Robbie Savage.

     
  3.  
    PASTIES 06:06: Radio 5 live
    Pasties

    Former England and Leeds footballer Danny Mills is part of an investment group that has bought West Cornwall Pasty Company from administrators. He tells 5 live: "There's a gap where banks just aren't lending," he said. The original company's strategy was "too aggressive" and expanded too quickly, which led to its demise. He blamed the pasty tax for the rising price of pasties.

     
  4.  
    CO-OP GROUP 06:01: Radio 5 live

    Michael Mol, professor of strategic management at Warwick Business School is on 5 live talking about Co-operative Group, which releases earnings today. "You have two different issues: the bank issue with huge losses," he said and "the group facing losses from the Somerfield acquisition". More losses could be on the way if they don't reform their governance structure, he said. They also have too many lay members who "don't know how to run a business," he said.

     
  5.  
    GOOGLE 06:00:
    Google building

    Google is likely to be under scrutiny today after it released results late on Wednesday that some considered disappointing. Google still made $3.45bn (£2.05bn) in its first quarter. But some are expressing concern about a surge in costs. That reflects Google's move into new businesses, including robotics and drones.

     
  6.  
    06:00: Howard Mustoe, Business Reporter

    Hello from me. Keep in touch via @BBCBusiness and bizlivepage@bbc.co.uk.

     
  7.  
    06:00: Ben Morris Business Reporter

    Good morning! Watch out for results from Co-operative Group due at 09:00. You can expect Google to be in focus today as well, releasing results which some investors consider disappointing.

     

Features

From BBC Capital

Programmes

  • JellyClick Watch

    Can Twitter’s co-founder Biz Stone break the mould with his social Q&A Jelly app?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.