Bank of America Corp. reported a more than $5 billion fourth-quarter loss as it got out from under some Washington oversight, including salary restrictions, by paying back its TARP investments at the end of 2009.
The Charlotte, N.C., banking giant reported on Wednesday that the loss available to common-share holders widened to $5.2 billion, or 60 cents a share, from $2.4 billion, or 48 cents, in the final quarter of 2008.
Revenue rose 60% to $25.08 billion from $15.68 billion.
Excluding the $4 billion of costs to repay TARP, the fourth-quarter loss was $194 million, versus a comparable loss of $1.8 billion a year-earlier.
Analysts had expected a loss of 43 cents a share and revenue of $27 billion, according to a survey by FactSet Research.
Bank of America said the latest quarter’s results reflected continued elevated credit costs, although they fell from the third quarter of 2009.
It said that net interest income fell from 2008 due to lower asset-liability management portfolio levels and lower loan demand.
Noninterest income rose on improved trading and investment and brokerage services, equity investments and investment banking, the bank said.
“As we look at 2010, we are encouraged by signs the economy is improving, as we have seen in the stabilization of our credit costs, particularly in the consumer businesses,” Chief Executive Brian Moynihan said in a statement.
“That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth.”
Bank of America’s results largely echoed those posted by J.P. Morgan Chase and Citigroup Inc. in the past several days. All three institutions repaid TARP investments last year, and all were cautiously optimistic about a leveling of credit deterioration at the consumer level.
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