Bank of America (NYSE:BAC) this morning reported a loss of $0.29 per share for the year 2009 and a loss of $0.60 per share for the fourth quarter.
It missed fourth quarter expectations of a $0.52 loss, according to data compiled by FactSet.
The 2008 earnings were $2.6 billion, or $0.54 per share. The loss of $0.60 for the fourth quarter was higher than the previous quarter, which reported a loss of $0.26 per share.
The net income figure was actually higher for the year and the quarter. Net loss narrowed to $807 million quarter-on-quarter and the income increased $2.27 billion year-on-year. However, for 2009, the annual net income figure was boosted by a $2 billion income tax benefit while the 2008 figure was a $400 million expense.
Despite higher net income, the figure for “preferred stock dividends and accretion” was staggering, overshadowing the net income. It was $8.5 billion for 2009 and $5 billion for the fourth quarter. TARP repayment in the fourth quarter represented $4 billion of the $5 billion amount.
Bank of America reported lower net interest income for the quarter on “lower asset liability management portfolio levels, reduced loan levels and the unfavorable impact of higher nonperforming loans”. The noninterest income “was up sharply” on “trading, investment and brokerage services, equity investments and investment banking”.
Net interest income for the fourth quarter fell $1.5 billion year-on-year while noninterest income increased $10.9 billion.
Bank of America is trading at $16.27, down 0.31 percent in pre-market trading.