Better news, better numbers
In spite of all the charges it faced, the bank came out with numbers that showed it was seeing a boost in its health. Many of the settlement costs hit hard on the fourth-quarter earnings, with a 63 percent decline in profit compared to a year earlier. The banks earnings reached $732 million, which came out to 3 cents a share, beating estimates of 2 cents a share.
Revenue for the fourth quarter was $18.7 billion — a drop of 25 percent from the year earlier. The drop can be attributed to the number of payments the bank had to make in its settlements. It’s estimated that without the charges, Bank of America might have posted revenue of $22.6 billion for the quarter.
Further signs that Bank of America is recovering can be seen in its annual profit, which rose from $1.4 billion in 2011 to $4.2 billion in 2012. The bank is also seeing fewer delinquent loans and reporting huge gains in wealth management. Further looking to improve the health of the bank, servicing rights to many of the bank’s loans are being sold off to streamline and improve efficiency.
Investing Insights: Bank of America Earnings: Moving in the Right Direction?