This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America Reports Slight Profit

Stocks in this article: BAC

Bank of America earnings story updated with changes throughout

  • Bank of America reports fourth-quarter profit of $700 million or $.03 a share. Analysts expected $0.02 a share, according to consensus estimates available at Thomson Reuters
  • Net revenue came in at $22.6 billion, compared with estimates of $21 billion.
  • Bank reported profit of $4.2 billion in 2012 versus $1.4 billion in 2011

NEW YORK ( TheStreet) - Bank of America (BAC) reported a fourth quarter profit of three cents per share, versus analyst expectations of a two cent gain.

Revenues of $22.6 billion exceeded Thomson Reuters analyst estimates of $21 billion, the bank told CNBC. The bank provided other ways of measuring the revenue number, however, which produced results of $18.9 billion and $19.6 billion.

"We enter 2013 strong and well positioned for further growth," said Chief Executive Officer Brian Moynihan.

Non-interest expenses fell to $18.36 billion for the quarter and $72.09 billion for the full year, from $18.94 billion and $77.09 billion a year ago.

That was roughly in line with expectations of Credit Suisse analyst Mosche Orenbuch, who estimates annual expenses will reach $59 billion by the end of 2015. Orenbuch downgraded Bank of America to "neutral" from "outperform" on Jan. 9 , arguing the market was discounting significantly faster improvements in efficiency than we would be expecting."

The expenses were slightly higher than had been forecast by Atlantic Equities analyst Richard Staite, who upgraded Bank of America to "overweight" on Oct. 24. Staite had been forecasting $70.7 billion in non-interest expenses on Nov. 8.

Since that time, Bank of America reached mortgage-related settlements with Fannie Mae (FNMA) over mortgage backed securities and with regulators over foreclosure errors. The bank incurred provisions of $5.2 billion related to those settlements, but it could not be determined if those provisions impacted the annual expense figure.

For the full year, the bank posted net income of $4.2 billion, or $0.25 per share, compared to $1.4 billion, or $0.01 per share in 2011. The three cent fourth quarter profit compared to a profit of 15 cents per share in the fourth quarter of 2011.

Bank of America shares were down 1.78% to $11.56 in pre-market trading.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs