17-Jan-14
Bank of America announced on Wednesday , improving credit quality , as it is positioned as the U.S. economy strengthened quarter earnings increased eightfold .
U.S. banking giant reported revenue of 32 billion to 215 billion fourth -quarter earnings to $ 367 million in operating income , compared to 1,870 billion profit during the same period last year.These results translate into earnings per share of 29 cents , higher than analysts' expectations of 26 cents.
Chief Financial Officer Bruce Thompson features 2013 year progress, after the company suffered badly in the 2008 financial crisis , due to its heavy exposure to the real estate bubble burst .
" The foundation is to give us grow and move the company forward , " Thompson on a conference call with reporters said .
Bank of America lowered its long-term debt in 2013 , significantly reduce operating expenses and in the aftermath of the financial crisis, the settlement of litigation progressed.
However, like many of its peers , Bank of America is still not completely get rid of the litigation related to the real estate bubble burst in the woods. It cost $ 2.3 billion lawsuit in the fourth quarter , up from $ 916 million were flat with last year.
"We think we have made great progress to clean up some things , and we still have more work , as we enter 2014 ," Thompson said.
The results were much lower than in the period prescribed in 2012 to boost credit losses. Bank of America accounted for just $ 336 million credit loss provision for the quarter amounted to 22 billion in 2012 .
Thompson said that consumers pay a percentage of their credit card balance is much higher than in the past . Consumers are using the card , " mostly handle and do business , rather than a means to balance ," he said.
"We continue to see a trend across the board , including our customers to manage their own affairs on the basis of a more conservative ."
In the consumer real estate business, Bank of America reported a quarterly loss of $ 1.1 billion a year earlier , compared with a loss of 3.7 billion . Fourth quarter 2012 suffered large settlements with the U.S. Federal National Mortgage Association , or Fannie Mae .
Revenue in the consumer and commercial banks rose by $ 2.0 billion due to better credit quality and higher average deposit balances . Earnings in this category is 14 billion a year ago.
Bank of America also pointed out that the balance of commercial loans and higher income from global banking records .
1,010 U.S. banks reported full-year earnings to compare one billion U.S. dollars 2.8 billion in 2012 .
Shares rose 2.9 percent in premarket trading .
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