BofA Hits Bump Over Loss Provisions

Charlotte, North Carolina-based ""Bank of America Corp. "":http://www.bankofamerica.com(BofA) announced this week that its net income declined 29-percent between 2006 and 2007, and its diluted earnings per share dropped 28-percent.
According to the lender's 2007 earnings report, BofA's net income hit $14.98 billion last year, compared to $21.13 billion in 2006. And, in just the fourth quarter of 2007, the company saw its net income fall to $268 million, or $0.05 per diluted share, compared to the $5.26 billion, or $1.16 per share, the company recorded in the fourth quarter of 2006.
BofA blames the lower returns on an assortment of factors, including trading account losses created by write-downs of collateralized debt obligations, increased provision expenses caused by the need for additional credit loss reserves, a slowing marketplace, and the aftermath of credit rating agencies making security downgrades.
""Our fourth quarter results were severely impacted by ongoing dislocations in capital markets and the slowing economy,"" said Kenneth Lewis, BofA's chairman and chief executive officer. ""Even given that environment, we certainly are not pleased with our performance. However, we are cautiously optimistic about 2008, though we believe economic growth will be anemic at best in the first half.""
Click ""here"":http://newsroom.bankofamerica.com/index.phpxs=press_releases&item=7964 to read more.