CHARLOTTE, N.C., July 21 /PRNewswire-FirstCall/ -- Bank of America Corporation today reported second-quarter 2008 net income of $3.41 billion, down from a record $5.76 billion a year earlier. Diluted earnings per share decreased 44 percent to $0.72 from $1.28 in the same period in 2007. Net revenue rose to a record $20.32 billion. Earnings available to common shareholders totaled $3.22 billion.
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ING Q2 results:
Net profit was euro1.92 billion ($2.86 billion), from euro2.56 billion in the same period a year ago.
"We are, of course, not immune to the challenging environment around us, and the sustained weakness across financial markets put pressure on earnings," said chief executive Michel Tilmant in a statement.
"Combined with lower real estate and private equity valuations, lower investment results accounted for the vast majority of the profit decline."
Shares fell 1.1 percent to euro22.74 in early trading in Amsterdam.
The company said "underlying" insurance earnings _ a nonstandard measure _ fell 45 percent to euro1.15 billion ($1.71 billion) while underlying banking earnings were down 17 percent to euro1.10 billion ($1.64 billion).
At insurance, apart from smaller gains on investments, fewer clients were interested in investment-linked products, especially in Asia. Gross income from premiums fell 2.3 percent to euro11.2 billion ($16.7 billion).
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The banking division wrote down real estate values and took higher provisions against potential bad loans. Losses linked to the U.S. mortgage market were limited to euro39 million ($58 million) and a bright spot was ING's online retail banking arm, ING Direct, where profits rose 4.7 percent to euro179 million ($267 million). Analyst Ton Gietman of Petercam said the results were in line with expectations. "The good news was that the company reduced its equity exposure, again proved resiliant in the credit crisis...and the balance sheet remained strong," he wrote in a note on earnings. "Worrrying, however is the strong increase in loan losses," which were euro234 million ($349 million), up from euro25 million a year ago. ====================================================== Wells Fargo Bank 9/19/2008 share $39.65; Q2 results: Wells Fargo reported second-quarter earnings fell 21 percent, beating expectations and stirring a rally on Wall Street on Wednesday.
The bank also boosted its dividend 10 percent, triggering a 32 percent jump in the bank's stock . That gain gives the San Francisco bank (NYSE: WFC) more valuable currency if it wishes to go shopping at the bargain bin of American banking.
...The bank set aside $3 billion, including $1.5 billion that was put in reserves for anticipated losses down the road. The bank charged off $1.5 billion in bad debts during the second quarter, or 1.55 percent of average loans, annualized. That compares to $1.5 billion, or 1.6 percent of average loans in the first quarter, and $720 million, or 0.87 percent, in last year's second quarter, before the current credit crisis kicked into high gear.
Total nonperforming loans were $5.23 billion, or 1.31 percent of total loans, at the end of June compared to $4.5 billion, or 1.16 percent, at the end of March. In April, the bank changed it policy on writing off defaulting loans, waiting 180 days instead of 120 days and postponing a possible hit to earnings.
"The increases in nonperforming assets continued to be centered in portfolios affected by residential real estate issues and the associated impact on the consumer," said Mike Louglin, the bank's chief credit officer.
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ETrade share $3.91; Q2 results:
Etrade reported Q2 earnings of -.19/share after the bell today vs the average analyst estimate of -.14/share. Highlights of the earnings report included loan loss provisions of $319 million, substantially higher than the provisions of $234 million in Q1.
In addition, the company divulged that it was holding preferred stock postions in Fannie Mae and Freddie Mac that were valued at $330 million at the end of the second quarter. However, during the GSE crisis that occurred in early July, the company sold 65% of these holdings at a pre-tax loss of $83 million, an event that will effect Q3 earnings.
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