BofA shares surge despite investment banking loss

Bank of America shares surged almost 6% on the opening bell on Wall Street after the bank posted net income of $2bn for the fourth quarter of 2011, despite its investment banking arm booking a loss.

Shares in the bank climbed 5.7% to $7.19 in early trading on the New York Stock Exchange as revenues beat analysts’ expectations. BofA posted earnings per share for the quarter of 15 cents, against a loss of 16 cents the previous year, while revenues rose 11% to $25.1bn. Its tier one capital ratio reached 9.86% at the end of December, up from 8.65% at the end of September and higher than the 9.25% minimum the bank had projected. Loan growth from traditional banking outpaced the investment bank where, like JPMorgan Chase and Goldman Sachs, BofA suffered sharp revenue declines. Like ...