Updated with Capital One's disappointing fourth-quarter results, and harsh reaction by investors in aftermarket trading.
As earnings reports continued to roll in, the KBW Bank Index (I:BKX) rose slightly to close at 53.62, although only six names showed declines, including Citigroup (C - Get Report), which was down 3% to close at $41.24.
Bank of America
Bank of America reported a fourth-quarter profit of $700 million or $.03 a share, beating the consensus EPS estimate among analysts polled by Thomson Reuters by a penny, after the company pre-announced a large mortgage putback settlement with Fannie Mae (FNMA) and a major contribution to the $8.5 billion foreclosure settlement between federal regulators and the nation's largest loan servicers.
Earnings for all of 2012 totaled $4.2 billion, or 25 cents a share, increasing from $1.4 billion, or a penny a share, in 2011.Bank of America CEO Brian Moynihan said during the company's earnings conference call that the company had achieved "strong results" in strengthening its balance sheet, as the company built a $19 billion reserve for mortgage putbacks and increased its estimated Basel III Tier 1 common equity ratio to 9.25% as of Dec. 31, which is significantly above the 8.5% that will be required in January 2019, when the Federal Reserve's enhanced capital requirements for systemically important financial institutions are fully phased in. When discussing the company's efforts to lower its expenses, Moynihan said "We have reduced our employee count in each quarter in the last five and we have done that while we continue to invest in our targeted growth areas," and that "we reduced our delinquent mortgage count, which allowed us to reduce our