[OPE-L] Bank of America, Wachovia Profits Plunge in Fourth Quarter on Credit Losses

From: Alejandro Valle Baeza (valle@SERVIDOR.UNAM.MX)
Date: Tue Jan 22 2008 - 14:07:16 EST

Tuesday January 22, 12:29 pm ET

By Ieva M. Augstums, AP Business Writer

Bank of America, Wachovia Profits Plunge in Fourth Quarter on Credit Losses

CHARLOTTE, N.C. (AP) -- Hurt by the deepening credit crisis, Bank of America Corp. said Tuesday its fourth-quarter earnings fell 95 percent, and Wachovia Corp. reported that profit tumbled 98 percent.Net income at Bank of America, the nation's second-largest bank, dropped to $268 million, or 5 cents per share, in the three months ended Dec. 31, from $5.26 billion, or $1.16 per share, a year earlier.

The bank's revenue fell 31 percent to $12.67 billion, from $18.49 billion last year.The results included LaSalle Bank, which Bank of America purchased on Oct. 1.

Analysts expected, on average, earnings of 18 cents per share on revenue of $13.24 billion, according to a survey by Thomson Financial. The estimates typically exclude one-time items.
Bank of America shares rose 93 cents, or 2.5 percent, to $36.90 in morning trading.Crosstown rival Wachovia said its fourth-quarter profit fell to $51 million, or 3 cents per share, from $2.3 billion, or $1.20 per share, during the same period a year earlier.

Full article: http://biz.yahoo.com/ap/080122/earns_banks.html

Alejandro Valle Baeza
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