BofA posts $1.2bn loss for final quarter of 2010

24 January 2011

Bank of America (BofA) has posted a loss of $1.2 billion for the final quarter of 2010, new figures have revealed.

According to the financial institution, the loss was due in part to a $2 billion goodwill impairment charge the bank paid on its home loans and insurance division.

BofA would have reported a $756 million, or $ 0.04 per share without having to pay the impairment fee.

The bank recorded a loss of $194 million during the final quarter of 2009.

Brian Moynihan, president and chief executive officer at BofA, said: “Last year was a necessary repair and rebuilding year. Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us.”

“We earned $10.2 billion before goodwill impairment charges, rebuilt our capital positions, reduced the risk on our balance sheet, and shed more than $19 billion in assets that didn't directly serve customers and clients.”

Further figures provided by the BofA showed that it paid a total of $12.4 billion in goodwill charges for the year, which led to a loss of $2.2 billion.

Without these payments, the bank would have earned $10.2 billion.

By Jim Ottewill

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