Trading Profits Help Bank Of America Earn $3.2 Bln |
| Wall Street Journal - Apr 16, 2010 |
Bank of America Corp. (BAC), boosted by a surge in investment banking revenue at Bank of America-Merrill Lynch, and a marked improvement in some kinds of troubled loans, reported $3.2 billion in first-quarter earnings.
The Charlotte bank's impressive investment-banking profits, mostly from Wall Street activities like bond and stock trading, basically offset the performance of the rest of Bank of America's businesses, which together lost $36 million during the quarter. The largest U.S. bank by assets hauled in $7 billion alone from trading revenues, helped in part by its controversial purchase of Merrill Lynch--a deal that sealed the recent retirement of former Chief Executive Ken Lewis.
Bank of America's more conventional banking businesses, like making loans to consumers and businesses, mostly turned in middling results. The bank's home loan unit, which includes its 2008 acquisition of Countrywide Financial, lost $2.1 billion, while its commercial bank and credit card businesses finally returned to profitability, even though their total loans--source of future profits--fell again. The commercial bank and credit card units both posted losses in every quarter last year.
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- Posted: 2010-04-16 10:54:38
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