Bank of America’s net income rose 41% in the 4th quarter, due to growth in fees and the purchase of FleetBoston Financial.
Bank of America reported that fourth quarter net income rose to $3.85 billion from $2.73 billion a year ago. Under purchase accounting rules, results reported for periods in 2003 and the first quarter of 2004 do not include the impact of FleetBoston Financial, which was acquired on April 1, 2004. Return on common equity in the fourth quarter was 15.63 percent.
“We are pleased with the year’s successes and our position entering 2005,” said the company’s president and CEO, Kenneth D. Lewis. “We began 2004 with the objective of achieving a seamless integration of Fleet while not interrupting our momentum in the legacy Bank of America franchise. The Fleet transition is not only on schedule, but we have increased customer satisfaction during the year, hit or exceeded our customer account growth and profitability targets and achieved promised cost savings.”
In addition to the impact of Fleet, the fourth quarter increase resulted from improving performance in all major business lines driven by the continued success in attracting, retaining and expanding customer relationships. Consumer accounts, deposit and card balances, credit and debit card purchase transaction volumes, trading, investment banking and assets under management all registered growth from the third quarter and the prior year.
The integration of Fleet remained on schedule as the major rebranding effort across the franchise was completed, systems conversions began and customer satisfaction and accounts continued to rise.
Fourth quarter earnings included merger and restructuring charges of $181 million after-tax, which reduced earnings by 4 cents per share.
“While 2005 presents such challenges as a flattening yield curve and continued systems conversions in the Northeast, I couldn’t be more satisfied with where Bank of America stands in meeting those challenges,” said Lewis.
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