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BofA posts $1.6-bn loss in fourth qtr on impairment charge

The financial services major, however, has still managed to cut down its losses compared to the $5.2 billion loss in the corresponding quarter last financial year.

twitter-logoPTI | January 22, 2011 | Updated 12:43 IST

Financial services major Bank of America on Friday reported a loss of $1.6 billion in the 2010 December quarter, bogged down by an impairment charge of $2 billion related to home loans and insurance business.

In the year-ago period, the entity had a loss of $5.2 billion.

BofA's revenues declined to $22.4 billion in the last three months of 2010, compared to $25.1 billion in the same period a year ago.

"The fourth quarter results include the previously announced goodwill impairment charge of $2 billion in the home loans and insurance segment. Excluding the goodwill impairment charge, the company earned $756 million," BofA said in a statement.

According to the firm, the fourth-quarter results also include $1.5 billion in litigation expenses - that excludes fees paid to external legal service providers - mainly in the consumer businesses.

BofA's results come after mixed showing by other Wall Street giants such as Citigroup and Goldman Sachs.

For the full year 2010, BofA incurred goodwill impairment charges to the tune of $12.4 billion.

"During the year, the company also recorded $2.6 billion in litigation expenses and $6.8 billion in representations and warranties provision," the statement noted.

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