BankAmerica Profits Soar to $265 Million
BankAmerica Corp. today reported a fourth-quarter profit of $265 million, a 342% jump over the same quarter last year.
However, the nation’s third-largest bank holding company’s earnings were boosted by $351 million in cash interest payments received from Brazil, which added $316 million to fourth-quarter profit.
BankAmerica, parent company of Bank of America, reported fourth-quarter earnings of $265 million, or $1.36 per share, compared to $60 million, or 27 cents per share, in the same period of 1987.
The fourth-quarter results brought BankAmerica’s earnings for the year ended Dec. 31, 1988, to $726 million, or $3.79 per share, compared to a loss of $955 million, or $6.43 per share, for 1987.
But the 1987 loss reflected a 1987 second-quarter $1.1-billion addition to its loan-loss reserves, reflecting problems with its Third World loans.
In its announcement today, BankAmerica again made an addition to its loan-loss reserves in connection with Third World loans, this time by $200 million.
Today’s results represented BankAmerica’s sixth consecutive quarterly profit. The banking giant had lost nearly $2 billion in the years 1985 to 1987 and had fallen from its ranking as the No. 1 bank in the nation.
“BankAmerica enters 1989 in an excellent position to deliver even greater value to our customers and shareholders as our momentum continues,” said BankAmerica Chairman A. W. Clausen.
“During the fourth quarter, net interest income from core operations continued to improve, non-interest expense from core operations reflected reductions from prior years, credit losses remained at low levels, nonaccrual assets again declined and the corporation’s capital base continued to grow,” Clausen said in a statement.