At first blush, Bank of America earnings of $.15/share are two cents ahead of expectations.Revenue of $25.1 billion is ahead of the $24 billion that was expected, and this is key because it helps emphasise that the “beat” was clean.
The stock is up 1.9% over 6% in the early going. It’s now above $7 for the first time in ages.
From the release:
“We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,” said Chief Executive Officer Brian Moynihan. “We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients. I am proud of our team and their ability to serve our customers well while transforming the company.”
“Our fourth-quarter results reflect the aggressive steps we have been taking to strengthen the balance sheet and position the company for long-term growth,” said Chief Financial Officer Bruce Thompson. “During the quarter, we significantly increased capital and liquidity. Our Tier 1 common equity ratio increased to 9.86 per cent from 8.65 per cent in the third quarter of 2011, and our time-to-required funding increased to 29 months from 27 months. For 2012, our focus is to continue to build capital and liquidity and manage expenses.”
“Reflecting a gradually improving economy,” continued Moynihan, “we saw solid business activity by companies of all sizes, with commercial and industrial loan balances rising 13 per cent from the fourth quarter of 2010, and small business loan originations increasing approximately 20 per cent in calendar year 2011.”
Lots more to come, as we work through the results.
The full results are right here.