Bank of America returns to profit in 2011 on streamlining efforts

Jan 19, 2012, 14:33 GMT

Washington - Bank of America on Thursday announced a return to profit for 2011, saying the effort required significant streamlining of its operations and staff.

The reported 2-billion-dollar profit for the third quarter of 2011 compared with a 1.2-billion-dollar loss for the same period in 2010. For the year, Bank of America reported a profit of 1.4 billion dollars, versus a 2.2-billion-dollar loss in 2010.

Bank of America is the United States' second largest bank by assets and has seen its figures rise and fall rapidly over the last three years thanks to the ongoing debt crisis.

'We enter 2012 stronger and more efficient after two years of simplifying and streamlining our company,' chief executive Brian Moynihan said in a statement.

'We built our capital ratios to record levels during 2011 on the strength of our core businesses and by shedding those that are not core to serving customers and clients.'

That shedding required a sale of its assets in China Bank Construction Corp, which brought in 2.9 billion dollars, assisting the bank in its efforts to build up sufficient reserves to bring it in line with new holding requirements to make sure banks have enough of a cushion in case of another financial shock.

Bank of America bought shares in the Chinese bank in 2005.

The bank also reported that it had trimmed down its investments in troubled European nations like Greece, Italy, Ireland, Portugal and Spain, with total exposure of 14.4 billion dollars at the end of 2011, down from 15.8 billion at the end of 2010.

The bank did report improvements in repayments to its loan book, including among private borrowers.