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: âLast 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.â
âWe 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.â
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