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Bank Results season: Bank of America tries to regain lost glory

Merrill Lynch & Co.

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“Repair and Rebuilding” spilled over into Q1 as Profits fell 33% to $2.05 billion even as Provisions fell 60% from $9.8 billion. To add insult to injury the bank has to provision $1 billion for repurchase claims from mortgage insurers that bought its “faulty” portfolios and Bruce Thompson will take over as CFO from Chuck Noski who leaves in less than a year. While the bank continues to grow in global Wealth and Investment Income (ML units) (all from WSJ) while Gas and Food costs catch up to a significant inflation push, the Durbin Amendment alone could take retail banks under the weather as profit upside is limited in one of their still growing businesses. As with JP Morgan, the revenues of above $26 billion were a sixth lower than last year and lower in most business segments except as mentioned above

However Q-o-Q the bank has improved %3.2 billion from the $1.2 billion loss reported in December despite retail banking income falling off the cliff by 49% over last year’s quarter. with Deposits growing by 4% the $1 T number suddenly does not seem as impressive given the bank’s reach and the commercial bank made $76 billion in new loans including less than 10% to CRE firms. Investment Banking ranks grew in Dealogic to no.2 with 8% worldwide share and 12% US share thanks to a strong showing by Merrill Lynch, In Global Asset Management flows also ML units helped double the asset base. the entire difference in the bottom line from December came from increase in Fee based income to nearly $15 billion from a smallish $9 billion in the last quarter of 2010

Bank of American Merrill Lynch Capital Partner...

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One comment on “Bank Results season: Bank of America tries to regain lost glory

  1. Pingback: Bank Results Season: Can the Citi break your heart? | The Banking and Strategy Initiative

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