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Journalism of Courage
Bank of America posted a steep loss of USD 7.65 billion for the July-September quarter,bogged down by a non-cash goodwill impairment charge of USD 10.4 billion.
The financial services major had incurred a loss of USD 2.24 billion in the year-ago period.
In a statement on Tuesday,Bank of America said it had a non-cash,non-tax deductible goodwill impairment charge of USD 10.4 billion for the three months ended September.
Excluding the impairment charge,the entity raked in a profit of USD 3.1 billion in the September quarter.
“The goodwill impairment charge is a non-cash,non-tax deductible charge applicable to the Global Card Services segment.
“The charge results from the limits to be placed on debit interchange fees under the financial reform legislation enacted in July 2010,which will reduce future revenues in the Global Card Services business,” the statement said.
Meanwhile,the company’s third-quarter revenues marginally declined to USD 26.70 billion from USD 26.04 billion in the comparable period.
According to Bank of America,the September quarter saw lower credit costs,higher net interest income and rise in
earnings from mortgage banking and card segments,among
others.
“These improvements were partially offset by lower service charges,lower trading account profits and a decrease in insurance income,” it noted.
