BAC Earnings

Since when did the protocol become announcing net income BEFORE preferred dividends? For as long as I can remember, companies reported earnings per share after deducting dividends paid to preferred shareholders.

Bank of America reported net income of $4.2 billion, a supposedly stellar figure. However, earnings per common share came out to only $0.44. Take 44 cents times the shares outstanding and you get $2.8 billion. THIS IS THE ACTUAL NUMBER PEOPLE !!!!!!!!!!!!

The company paid over $1.4 billion in preferred dividends in the first quarter alone. Ponderous.

They also booked $1.9 billion in pre-tax gains from their sale of shares in China Construction Bank. They realized $2.2 billion in income from their credit spreads widening.

Overall revenue numbers jumped because the company is considerably larger after the Merrill & Countrywide acquisitions. Of course, you have to pay for all of these new toys: non-interest expense increased 55% from the previous quarter.

I am not impressed.

http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-newsArticle&ID=1277955&highlight=