BofA Posts Trading Profit 98% of Days With One $50 Million Loss
By Hugh Son - Feb 28, 2013 4:25 PM ET.
Bank of America Corp., the second- biggest U.S. bank by assets, said traders lost $50 million on their worst trading day of 2012, a rare blemish in a year in which the firm made money 98 percent of the time.
The lender showed a profit on 243 of the 249 trading days, with profit exceeding $25 million during 80 percent of the sessions, the Charlotte, North Carolina-based company said today in an annual regulatory filing. In 2011, Bank of America showed a profit 86 percent of the time, with the largest single-day loss of $119 million and losses topping $25 million on 12 days.
Co-chief Operating Officer Thomas K. Montag, 56, has curtailed trading risk the past two years amid subdued economic growth and uncertainty created by the European debt crisis. Bank of America’s global markets division earned about $1 billion in each of 2012 and 2011, compared with $4.2 billion in 2010.
JPMorgan Chase & Co. said this week that traders in its investment bank lost money on seven days in 2012, down from 26 the previous year. Average daily revenue in the trading unit was $69 million in 2012, up from $60 million in 2011, according to the New York-based bank, ranked first by assets in the U.S.