Earnings per-share of Bank of America in 2008 is expected to be almost $ 4.00. According to the available data, the Bank faced some losses in the last year and especially in the last two quarters of the year. The bank is expecting to make-up for the losses in 2008.
The Bank of America is expecting a rise in business as well as profitability and so, the earnings per-share is going to rise in 2008. Bank of America was involved in a number of activities that caused a huge amount of loss for the Bank. As a result of this loss, the per-share earning of the Bank also came down by several cents.
According to the press releases by the Bank, it can be seen that in the last quarter of 2007 there was a major downfall in the quarterly profit of Bank of America. The profit in this quarter fell down by 95%. According to the statistics there are a number of reasons for all these losses like losses due to write-downs, inadequate trading decisions and many more . At the same time, income of the Bank was also affected by huge amount of credit woes.
Following tables represents the downfall in the income of the Bank in 2007:
|Year||2006||2007||2008 (expected)||2009 (expected)|
|Actual Earning Per-Share||$4.70||$3.14||$4.15||$4.61|
In the year 2007, Bank of America faced credit losses of around $3.31 billion. Another $800 million loss was faced due to the bad performance of the Bank in the arena of money market mutual funds. On the other hand, the corporate banking and investment services caused major loss of around $2.76 billion. At the same time, consumer and small business banking also caused losses to the Bank. The earning per-share of Bank of America went down a little bit of all because of these factors.