Bank of America Reports Positive Earnings

Bank of America ended the year with a positive earnings report, but its reputation among retail investors has taken a hit, according to a fourth quarter study by Millionaire Corner.

Bank of America – the nation’s second largest bank in terms of assets - remains the most widely used bank among both Millionaire and non-Millionaire investors, but the institution’s image appears to be somewhat tarnished as result of  the bank’s exposure to subprime mortgages and a pending lawsuit charging Bank of America and several other financial giants with deceptive foreclosure practices.

The share of investors reporting a positive impression of Bank of America has dropped significantly from 2009, according to our most recent wealth study. The percentage of Mass Affluent investors – those with a net worth of $100,000 to $1 million not including primary residence – reporting a positive impression fell from 39 percent in 2009 to 9 percent in 2011. The share of Millionaires – investors with $1 million to $5 million – fell from 17 percent to just 6 percent over the same period, while the share of Ultra High Net Worth Investors – who have $5 million to $25 million – reporting a positive impression of Bank of America fell from 22 percent to 6 percent.

Today Bank of America reported a net income of $2 billion, or 15 cents per diluted share, for the fourth quarter of 20ll. This compares favorably when looking at the net loss of $1.2 billion or 16 cents per share reported for the same period in 2010. Full-year net income was $1.4 billion, or 1 cent per diluted share, compared to a net loss of $2.2 billion of 37 cents per diluted share in 2010. Shares of the bank, which hit a year low of $4.92, closed the day at $6.96 a share.

“We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,” said Brian Moynihan, chief executive officer of Bank of America, in a prepared statement. The bank increased the number of new small business loans originated or committed by 20 percent in 2011,  and saw a year-over-year increase of 13 percent in its commercial and industrial loan balances in the fourth quarter. At the same time, the bank has solidified its position by selling businesses not considered core to the bank’s mission of serving customers and clients.

“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 Bruce Thompson, chief financial officer for Bank of America. Among other trends, the bank noted a $4 billion year-over-year increase in deposits in the fourth quarter and a 45 percent increase to 9.2 million in mobile banking customers in 2011.