BofA's earnings miss market estimates on mortgage-related losses

17:07, April 16, 2011      

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Bank of America on Friday reported quarterly earnings that missed market estimates, as the largest U.S. bank by asset was hit by mortgage-related losses.

The bank said its net income for the first quarter was 2 billion dollars, or 17 cents per share, much below the Wall Street expectation of 27 cents per share. The giant bank earned 3.2 billion dollars for the same period a year earlier, or 28 cents per share.

According to the report, Bank of America lost 2.39 billion in its residential mortgage unit, higher than the 2.07 billion dollars loss in the first quarter of 2010. Revenue declined and overall expenses rose in the mortgage business, but write-offs of bad loans actually fell.

On Wednesday, JPMorgan Chase & Co, the second largest U.S. bank, also said it suffered extraordinarily high losses on mortgage- related issues in the first quarter. "Unfortunately, these losses will continue for a while," said JPMorgan Chief Executive Officer Jamie Dimon.

Bank of America said its chief risk officer Bruce Thompson will take the position of chief financial officer at the end of the second quarter. Current CFO Chuck Noski will then become vice chairman.

The bank's shares were sold off on the results and fell about 1. 3 percent by press time.

Source: Xinhua

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