BofA earnings fall after the charges immobilier

The second

U.S. bank announced on 7 January that its results would be affected by a long series of items, including more than five billion dollars (3.74 billion euros) in charges related to mortgages, 1.3 billion of tax credits and $ 700 million of charges related to the value of its dette.

However, quarterly results were supported, such as JP Morgan Chase issued the day before by a recovery in mortgage lending activity during the quarter, up 42% compared to the same period 2011.

Similarly, the bank began last quarter to downsize its subsidiary responsible for managing mortgages, reflecting a gradual recovery from the crise.

"We left a lot of risky assets," said Chief Financial Officer Bruce Thompson at a press conference téléphonique.

But the bank has yet to finalize a settlement with private investors in the mortgage market, remains in dispute with insurers and mortgage credit is subject to legal proceedings the Department of Justice for claims sold mortgages sold to Fannie Mae and Freddie Mac.

Most problems come from the Bank of America purchase of Countrywide Financial in 2008, specializing in loans to populations at risk, called "subprime", the origin of the crisis financière.

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40 BILLION PERDUS

The bank has already lost more than $ 40 billion through settlements and redemptions of debt sold to investors during the bubble immobilière.

Despite these charges, BofA results are slightly higher than the expectations of Wall Street.

Its quarterly profit in the fourth quarter was $ 700 million, or 3.0 cents per share, against $ 2.0 billion, or 15 cents per share, a year earlier. The consensus Thomson Reuters I / B / E / S was 2.0 dollars/action.

It was also supported by a decrease in provisions for doubtful accounts, which accounted for $ 2.2 billion instead of 2.9 billion a year earlier, as well as an increase of 58% in commissions from the bank of investissement.

To improve profitability, Bank of America launched a major cost reduction program in 2011 to reduce its spending eight billion by mi-2015.

His expenses were reduced to $ 18.4 billion in the fourth quarter, against 18.9 billion a year earlier, excluding impairment of goodwill ("goodwill") .

expenses include BofA's stake to $ 2.5 billion agreement to $ 8.5 billion by the federal government signed with ten major players in the mortgage to compensate borrowers whose property was seized under conditions contestées.

It also includes $ 2.7 billion charge related to the settlement of disputes with Fannie Mae on subprime sold by the bank to the refinancing institution and delays in foreclosures immobilières.

On Wall Street, the action BofA lost ground on Wall Street in the morning, as Citigroup has also published results considered décevants.

The title

BofA lost 3.2% to 4:20 p.m. GMT Citi and yielded 2.7%, while shares JPMorgan Chase and Goldman Sachs were both reacted positively yesterday, after the publication of their results trimestriels.

Delame Nicolas Rouillon and Juliet for the French service, edited by Benoît Van Overstraeten