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BofA posts $1.2bn quarterly loss

New York - Bank of America, the biggest US bank, reported Friday a net loss of $1.2bn for the fourth quarter, citing a hefty charge in its home loans and insurance segment.

The loss was the second consecutive quarterly setback, after a $7.3bn loss in the third quarter.

For the 2010 full-year, Bank of America reported a net loss of $2.2bn, weighed down by a $12.4bn charge.

That amounted to a loss of 37 cents per share, compared to a loss of 29 cents per share in 2009.

Excluding a fourth-quarter $2.0bn charge for goodwill writedown amid the home foreclosures meltdown, Bank of America said it would have earned a profit of $756m in the October-December period, and earnings per share of four cents.

That was well below the average analyst estimate of 14 cents per share, but was a marked improvement on the loss of 60 cents per share the year earlier.

Fourth-quarter revenue fell 11% to $22.67bn.

"Last year was a necessary repair and rebuilding year," Brian Moynihan, the bank's president and chief executive, said in a statement.

"Our results reflect the progress we are making at putting legacy - primarily mortgage-related - issues behind us."

Bank of America was among the hardest hit banks during the financial crisis that flared following the collapse of Lehman Brothers in September 2008.

It received $45bn in bailout funds from the federal government, and repaid the money in December 2009.

The bank has been hit particularly hard in its home mortgage business, and has had to agree to buy back problematic mortgages from government home finance underwriters Fannie Mae and Freddie Mac.

It said Friday that the fourth quarter results also include a $4.1bn provision for "outstanding and future mortgage repurchase claims."

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