Monday, April 20, 2009

BofA: $13.4 billion in Credit-loss provisions

by Calculated Risk on 4/20/2009 08:55:00 AM

From CNBC: BofA Tops Forecasts with Help from Merrill

While results topped analysts' forecasts, they were bolstered by one-time events, including a $1.9 billion gain from selling shares of China Construction Bank and $2.2 billion of gains tied to widening credit spreads.
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Bank of America set aside $13.38 billion for credit losses in the quarter, up from the fourth quarter's $8.54 billion.
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Credit quality deteriorated broadly as the economy weakened, housing prices fell and unemployment rose.

Net charge-offs rose to $6.94 billion from $2.72 billion a year earlier. Nonperforming assets more than tripled to $25.74 billion, and rose $7.51 from year-end.

Bank of America's credit card business lost $1.77 billion in the quarter.

"We continue to face extremely difficult challenges, primarily from deteriorating credit quality driven by weakness in the economy and growing unemployment," Lewis said.
The confessional is still open.