BofA reports net loss of $7.3bn for third quarter following one-off charge

20 October 2010

Bank of America (BofA) has reported a loss of $7.3 billion for the third quarter of 2010.

According to official figures from the financial institution, “a non-cash, non-tax deductible goodwill impairment charge of $10.4 billion” was responsible for impairing the performance for the three-month period.

The charge stems from limits placed on debit interchange fees, which were introduced as part of the financial reform implemented by the US authorities earlier in the year, the bank explained.

Without the payment, BofA would have earned $3.1 billion or $0.27 per share, a figure which would have been an increase on the $1 billion seen in the same period the previous year.

Overall the bank’s performance benefitted from reductions to its total operating outgoings due to lower credit costs credit and higher net income interest.

Brian Moynihan, president and chief executive officer at BofA, said: “We are adapting to the regulatory environment, credit quality continues to improve, and we are managing risk and building capital.

“We are realistic about the near-term challenges, and optimistic about the long-term opportunity.”

Analysts at Bloomberg anticipated that the bank would earn an estimated $0.14 per share.

By Jim Ottewill

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