Profits rise at Bank of AmericaBank of America, the US's largest bank, has posted a significant profit in the first financial quarter of 2009, in a boost to the US's ailing financial markets.
The bank said on Monday it earned $4.2bn in the first three months of 2009, compared to a $1.02bn profit in the same period a year ago.
Earnings were boosted by profits from the company's acquisition of investment firm Merrill Lynch and Countrywide mortgage company, it said.
But the bank said it had also set aside $13.4bn to cover its losses, and the Dow Jones Industrial Average index slumped 289.44 points (3.56 per cent) to 7,841.89 at the end of Monday's trading as fears over US banks grew.
The news comes as business software giant Oracle said on Monday it would buy technology firm Sun Microsystems for $7.4bn.
Executive pressure
Business analysts say Bank of America's better than expected results could take some pressure off Ken Lewis, the firm's chief executive, who has faced calls from some shareholders to either give up his job as chairman or be removed.
Lewis was criticised this year over the purchase of investment banking firm Merrill Lynch, which closed on January 1, after shareholders approved the deal only to learn later it had suffered huge losses that prompted a government bailout.
"We understand that we continue to face extremely difficult challenges," he said in a statement after the release of the results.
Bank of America's improved profit is the latest in a string of bank earnings that have beaten expectations, including JPMorgan Chase and Citigroup.
The firm received $45bn in government funds as part of the US treasury department's $700bn financial bailout package last year.
Lewis was criticised this year over the purchase of investment banking firm Merrill Lynch, which closed on January 1, after shareholders approved the deal only to learn later it had suffered huge losses that prompted a government bailout.
"We understand that we continue to face extremely difficult challenges," he said in a statement after the release of the results.
Bank of America's improved profit is the latest in a string of bank earnings that have beaten expectations, including JPMorgan Chase and Citigroup.
The firm received $45bn in government funds as part of the US treasury department's $700bn financial bailout package last year.
Job concerns
Oracle's bid to buy Sun Microsystems, which comes after Sun reportedly rejected a takeover bid from computer giant IBM, will boost Oracle, the number two software firm, by giving it Sun's popular Java programming language and Solaris operating software for computer servers.
Sun's board of directors have unanimously approved the deal which is expected to close this year depending on approval from the company's stockholders and US federal regulators.
Oracle did not say whether the acquisition would lead to job losses - the firm currently employs about 86,000 people worldwide while Sun has about 33,000 employees.
Sun's board of directors have unanimously approved the deal which is expected to close this year depending on approval from the company's stockholders and US federal regulators.
Oracle did not say whether the acquisition would lead to job losses - the firm currently employs about 86,000 people worldwide while Sun has about 33,000 employees.
Aucun commentaire:
Enregistrer un commentaire