Bank of America (BofA), the US’ largest retail
bank, has reported first half net profits of $6.3bn, down 15.6%
from the year-ago period.
BofA’s retail focussed Deposits unit posted
first half net earnings up by 17.8% at $1.35bn while the Global
Card Services division returned to the black, posting net profits
of $1.75bn (H109 -$3.34bn).
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But according to BofA, the Card unit will take
a hit of $1bn after-tax in fiscal 2010 of complying with the terms
of the CARD Act.
Losses widened at BofA’s Home Loans arm, to
$3.6bn from a loss of $1.2bn in the corresponding period last
year.
Average retail deposit balances rose 3% from a
year ago to $649.6bn.
Net charge-offs were $1.2 billion lower in the
second quarter than the previous quarter, reflecting an improvement
in the consumer and commercial portfolios.
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By GlobalDataBofA’s ongoing branch closure programme
resulted in more than 3% of its branches closing in the past
12 months, reducing the network from 6,109 units to 5,900
outlets.
