Bank of America said its quarterly loss $5.2 billion, or 60 cents per share, compared with a year-earlier loss of $2.4 billion, or 48 cents a share. Analysts' average forecast was a loss of 52 cents per share, according to Thomson Reuters I/B/E/S.
The report - along with similar earnings reports from other major US banks - signals the long, gradual recovery of the US economy from the recession and financial crisis, analysts said. US Bancorp also reported fourth-quarter results on Wednesday, posting a $602 million profit on higher fee income. Bank of America's quarterly revenue jumped 59 percent to $25.4 billion, primarily due to the addition of Merrill Lynch & Co.
Net income in its global markets unit was $1.2 billion, compared with a net loss of $3.7 billion a year earlier. The bank cited a more favourable trading environment and the addition of Merrill. The Merrill acquisition also bolstered the global wealth and investment management unit, which saw net income rise by $816 million to $1.3 billion.
For the full year 2009, Bank of America posted net income of $6.3 billion, compared with $4 billion in 2008 during the height of the financial crisis. In early December, Charlotte, North Carolina-based Bank of America repaid $45 billion in Troubled Asset Relief Program funds, leading a wave of bailout repayments by the country's biggest banks.
Bank of America said the repayment resulted in a $4 billion one-time charge in the fourth quarter. The charge totalled $5.022 billion including preferred stock dividends. Excluding the one-time charges, the bank posted a quarterly loss of $194 million. Nonperforming assets - the full range of delinquent and defaulted loans - totalled $35.7 billion at the end of the fourth quarter, up 5.6 percent from the end of the third quarter. Bank of America shares were up 8 cents to $16.40 in premarket trading.