Bank of America (NYSE: BAC) announced Wednesday that it had total net income of $6.3 billion for the full year 2009, despite posting a fourth quarter loss that included costs from repaying TARP funds.
The bank posted a $194 million loss in the fourth quarter compared to the loss of $1.8 billion in the same period a year earlier. The latest quarter felt impact of a one time cost from TARP repayment to the tune of $4 billion.
“While it’s disappointing to report a loss for the fourth quarter, there were a number of important accomplishments worth noting,” said Chief Executive Officer and President Brian T. Moynihan. “First, we repaid the American taxpayer, with interest, for the TARP investment. Second, we have taken steps to strengthen our balance sheet through successful securities offerings. And third, all of our non-credit businesses recorded positive contributions to our results.
During the fourth quarter Bank of America paid the U.S. Treasury $45 billion to repurchase all of the preferred securities it issued the agency when receiving TARP aid and became free and clear of the program.
The bank reported a 59 percent increase in net revenue for the year to $25.4 billion, up from $16 billion. The jump was largely pushed by the addition of Merrill Lynch.
In the fourth quarter the provision for credit losses was $10.1 billion for the bank, which is $1.6 billion higher than in the fourth quarter a year earlier. However, it does mark a decline from the third quarter of $1.6 billion.
“As we look at 2010, we are encouraged by signs the economy is improving, as we have seen in the stabilization of our credit costs, particularly in the consumer businesses,” added Moynihan. “That said, economic conditions remain fragile and we expect high unemployment levels to continue, creating an ongoing drag on consumer spending and growth.”
Additionally, the bank listed some of its 2009 statistics for mortgage relief efforts, stating home ownership retention opprotunities were provided to roughly 460,000 customers, which includes 260,000 loan modifications as of December 31.
