Posted on 04/17/2013 9:25:57 AM PDT by SeekAndFind
Bank of America Corp. BAC shares dropped Wednesday after first-quarter results fell short of expectations and showed the financial giant was struggling to boost growth in its core lending business.
Revenue dropped 8.4% when an accounting charge related to the bank's debt was excluded. First-quarter profit of 20 cents a share was up strongly from a year earlier but came in two cents short of Wall Street's expectations.
The results show that despite the bank's efforts to shrink its size and balance sheet, growth remains elusive amid low interest rates and intensified government regulation.
Battle of the Banks
It's that time of year again. The country's top financial firms are releasing first-quarter earnings. Review key questions facing 10 of the biggest companies.
As banks release their financial earnings this week, follow along and track their performances.
The bank's net interest income—or the money it makes off loans—fell 1.6%, as borrowers took less money out in loans from the year earlier. Consumer loans fell 7.5% from the year earlier period.
While Bank of America isn't alone in its struggles to stem declines in revenue, the Charlotte bank's losses are the latest sign that it hasn't recovered its footing five years after the financial crisis.
"BAC simply didn't hit the ball out of the park relative to their peers thus far," said Sterne Agee analyst Todd Hagerman.
Shares dropped in morning trading.
(Excerpt) Read more at online.wsj.com ...
http://www.marketwatch.com/story/stocks-hit-by-bank-of-america-yahoo-results-2013-04-17
U.S. stocks fell hard on Wednesday as an Apple Inc. supplier gave a weak forecast, Bank of America Corp. posted disappointing results and speculation swirled that Germany could lose its triple-A rating.
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B of A suffering? Boo-freakin-hoo. Cry me a river.
Their acquisition of Country Wide Financial (America’s largest subprime mortgage lender ) was one of their biggest mistakes.
Perhaps because they suck? FAIL EMMER EFFERS!
I spit on the whole lot of them.
I want our little banks back. The one’s who knew your name, none of this bs.
I know, I’m wishing for my America now lost.
.
Better to go to your local community and savings bank instead.
These banks are the ones who do traditional banking.
The giant too-bi-to-fail banks like Bank of America are doing lots of other things -— investment banking, derivatives ( via Merrill Lynch ), etc.
Too unwieldy to control.
Thanks for the post; saw this somewhere else as well. It’s worrisome to me because of BAC’s size; its a clear indication of broader weakness in the underlying economy. That and the fact of a non-confirmation of the DJIA high by the Transports points to a market moving considerably lower going forward. That the Transports are posting higher percentage losses than the DJIA indicates, to me at least, that business activity is slowing and remarkably so.
BoA should have been broken up.
I worked at Citicorp when they “merged” w/ Travelers. I remember the big to do and how they changed the rules to allow it to happen.
Of course we were all laid off. I did manage to land a great job after the take over. The interviews were rough, most Citicorpers did not make the cut.
After I accepted the job, they “turned” They weren’t as “friendly” as they 1st appeared. I had a bad feeling. Went to the President of Citicorp, told him about the new job and I accepted it and could I now turn it down and still get my severance pay.
He said absolutely, and that is what I did. 1 year later, everyone with their new jobs were laid off, minus their severance pay from Citicorp.
>Their acquisition of Country Wide Financial (America’s largest subprime mortgage lender ) was one of their biggest mistakes.<
BoA was forced to purchase Country Wide.
Bank of America in name is really Nations Bank in fact. They such a creepy organization that they had to change their name when they merged because Nation's Bank's reputation was just awful.
Smartest thing for them to do is to break the thing up into digestible pieces and sell the thing off.
They're not all gone. I never even get asked for ID. Ever. I might hear, "How's your wife doing?"
I have never understood this.
I know they are and I am sad about it, amongst many other things.
I thought we could at least slow it down; however, it does not seem to be the case.
I don’t either. I know there are FReepers that are financially underwater. But some complain that they won’t donate for reasons listed. That’s not Conservative. And I don’t get it either.
Indeed. "Since I'm not 100% happy here, I'm going to freeload!"
That's the only way I know how to take it besides pure stinginess and greed.
I agree. It’s an excuse.
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