Bank of America posts big loss in consumer loans

14:04, October 17, 2009      

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Bank of America Corp. on Friday reported a loss of 2.24 billion U.S. dollars in the third quarter due to increasing loan losses.

The bank, the second largest in the United States, said its losses for failed loans came to almost 10 billion dollars during the July-September period, up almost 1 billion from the second quarter.

The bank said that it had a loss of 1 billion dollars before accounting for preferred dividends, which, once included, put the loss at 2.24 billion dollars.

Though its revenue from retail deposits and investment grew by 26.4 billion dollars, a 33 percent increase on 19.9 billion dollars a year ago, the bank's finances were pummeled by losses on its businesses connected to home loans and consumer credits.

"Obviously, credit costs remain high, and that is our major financial challenge going forward," the bank's chief executive, Kenneth D. Lewis, said in a statement. "However, we are heartened by early positive signs, such as the leveling of delinquencies among our credit card numbers."

Bank of America has accepted some 45 billion dollars in taxpayer bailouts since the financial crisis erupted last year, and has issued debts backed by the government.

Source: Xinhua
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