In contrast credit cards after a net loss of 9

The week of the results of the major American banks ended Friday last by the announcement of only losses published to date, those of Bank of America. The first American Bank in the amount of its assets announced a net loss of 2.24 billion over FY 2010, for a revenue down 7 to $ 114 billion. She accused a net loss of 1.24 billion in the fourth quarter for revenue - found forecasts below analysts - of $ 22.7 billion. "2010 has been dedicated to the repair of the balance sheet and difficult decisions on problems which we have inherited", said Brian Moynihan, the CEO of the Bank, Friday.

The quarterly loss is attributable to provisions that the Bank again have consented - to $ 4.1 billion dollars - for its loans and real estate-related securitized products. It has added $ 1.5 billion to cover its legal costs and reduced to $ 2 billion on its books Countrywide, the first provider of real estate products bought by the former President of Bank of America, Ken Lewis. "It took to continue cleanup in 2010 and finally to integrate Countrywide and Merrill Lynch", insisted Brian Moynihan. These integrations are completed, find, and he now wants to concentrate on the reduction of expenditure and improving organizational effectiveness.

The real drama

Real estate risk yet still long weighing on the accounts of the institution. Earlier this year, Brian Moynihan had announced an agreement with the mortgage agencies Fannie Mae and Freddie Mac, he was compensated in the amount of $ 2.8 billion. He must now face the claims of private investors who want the Bank to purchase products that have been sold but also to those of credit Enhancer which were insured. Charles Noski, Chief Financial Officer, warned that losses from these disputes could still reach "between 7 and 10 billion dollars."

Despite results full of exceptional items (transfers of assets, tax earnings, etc.) and new provisions that complicate a little reading, analysts however see a marked improvement in the results of the Bank in the last quarter. Only two of its six divisions are losses over the last three months of the year. Deposits, reaching 1,000 billion, and who blame a loss of 201 million dollars because of a declining revenues due to new regulations and increased spending (the annual net profit reached 1.3 billion, less than half that of 2009). The branch dedicated to residential loans, on the other hand, that shows a loss of $ 5 billion because of a provision of $ 4.1 billion. Over the past two years, this branch had to take a total of 12 billion of supplies.

In contrast, credit cards - after a net loss of 9.8 billion in the third quarter due to a provision of $ 10 billion - are in green, with a profit of 1.4 billion. Declining reserves, and the cost of credit have contributed to that commercial branch is also beneficial to the tune of $ 1 billion. For its part, wealth management activity seems take advantage of the acquisition of Merrill Lynch, even if its result is down to 333 million for revenues that are making progress thanks to an increase in commissions. Finally, the division devoted to the brokerage saw its profits and revenues decreased in the last quarter due to a drop in market activities.

Like its rivals, Bank of America has undergone in the last quarter the decline in the market of the "fixed income", but took advantage of the improvement of the quality of the credit (it has decreased its reserves of 7 billion in 2010). However, its performance are not yet up to those of JP Morgan, whose net income is up 47 in the last quarter, Wells Fargo ( 21) or even Citi who has succeeded to recorded a profit of 1.3 billion in the fourth quarter and whose title has taken 50 last year.