Bank of America net income % is three times higher than big oil!

[6SpeedTA95]

Bank of America Corp., the second-largest U.S. bank, says its fourth-quarter earnings rose 47 percent to $5.26 billion, or $1.16 per diluted share, from $3.57 billion, or 88 cents per share, in the same period a year earlier.

Excluding pre-tax merger and restructuring charges of 3 cents per share, earnings for the latest quarter were $1.19 per share. That beat the Thomson Financial analysts' consensus estimate of $1.18 per share.


BofA's results were aided by its $35 billion acquisition of credit-card giant MBNA Corp. BofA's year-earlier numbers did not include the addition of MBNA.

Revenue during the latest quarter climbed 34 percent to $18.82 billion from slightly more than $14 billion a year earlier. Net interest income increased to $8.96 billion from $8.10 billion as BofA's net interest yield tightened by 7 basis points to 2.75 percent.

Noninterest income rose 66 percent to $9.87 billion from $5.95 billion. The addition of MBNA boosted card income, and the sale of BofA's commercial banking unit in Asia resulted in a $165 million gain.

For the full year, net income increased 28 percent to $21.13 billion, or $4.59 per share, from $16.47 billion, or $4.04 per share, a year earlier.

"Bank of America had another strong year in 2006," Chief Executive Ken Lewis says in a statement. "In short, our associates are proving that when you combine listening to customers to understand their needs with our advantages of scale, innovation and execution, it creates a powerful value proposition that wins in the marketplace."

As of June 30, Charlotte-based BofA (NYSE:BAC) had nearly $591 billion in deposits. The company operates 5,800 retail-banking offices and nearly 17,000 ATMs.

BofA earnings jump 47% - Charlotte Business Journal:


BoA's net income is up to 28.9% and pulled in 5.26 billion dollars on 18.2 billion in revenues during the 4th quarter alone.

Thats a damn good margin but where's the outrage? Why is one company allowed to run ridiculously high margins without a peep from anyone but the second big oil posts billions in profit and a margin of only 10.8% the media has a hayday?

[DosEquis]

I think some of it comes from the fact BoA has a ton of competition. If i were one of their customers and they gave their CEO a 400 million dollar retirement package I would just go some place else and have dozens of good choices to pick from.

I know this part isn't exactly fair for the oil company, BUT going to a bank is something you do to start a checking account, invest some money, or get a loan for a new vehicle...things you actually want yet don't necessarily need. People need gas to get to work and feel forced to buy it..and then there is also little competition out there to choose from.

[Thorgrim]

How many subsidies and special tax breaks do we give BoA?

Also, we just slashed interest rates on student loans, which while it doesn't directly hurt banks, it certainly doesn't make it the scam system is used to be with 6.8% interest on loans guaranteed by the government...

[6SpeedTA95]

Originally Posted by DosEquis

I think some of it comes from the fact BoA has a ton of competition. If i were one of their customers and they gave their CEO a 400 million dollar retirement package I would just go some place else and have dozens of good choices to pick from.

I know this part isn't exactly fair for the oil company, BUT going to a bank is something you do to start a checking account, invest some money, or get a loan for a new vehicle...things you actually want yet don't necessarily need. People need gas to get to work and feel forced to buy it..and then there is also little competition out there to choose from.

Are you saying that if our banks decided to give us 0% interest or negative interest rates that things wouldn't get crazy? Without a vehicle you can't buy gas we can always downsize and get cheaper gas sipping cars as well which some do but the market for big trucks and SUV's has been surprisingly resilient.

I agree there's a competition problem in the energy market, but much of that is the fault of our government. They have made drilling so expensive that its very difficult to get into the business. There's also a supply problem that's bit us in the ass thanks to government once again...

Energy company profits are roughly 10% which is not a high number...so I dont understand why they get shit on

[6SpeedTA95]

Originally Posted by Thorgrim

How many subsidies and special tax breaks do we give BoA?

Also, we just slashed interest rates on student loans, which while it doesn't directly hurt banks, it certainly doesn't make it the scam system is used to be with 6.8% interest on loans guaranteed by the government...

Whats that have to do with anything? With all those special tax breaks energy companies profits are typically in the 9 to 12% range.

[Thorgrim]

Originally Posted by 6SpeedTA95

Whats that have to do with anything? With all those special tax breaks energy companies profits are typically in the 9 to 12% range.

You make it sound as though a company being profitable makes it automatically outrageous

What was outrageous with big oil was that it was barely tolerable that they made such a profit while buying oil while Americans were taking such a loss...buying oil, ontop of that they started giving hundreds of millions of dollars in fat retirement checks, even Orly was outraged and he rants about liberals and socialism constantly

However, that's not what tipped the balance, it was that rather frustrating situation combined with the fact that YOUR TAX DOLLARS AND MY TAX DOLLARS were PADDING THEIR PROFITS

Before you get into the numbers, it's the principle

I don't want one sixpence of my money going to a company to watch it laugh as it gets record breaking profits while I can barely fill up my gas tank, and then hands out retirement packages to CEOs like it was raining money

[6SpeedTA95]

Originally Posted by Thorgrim

You make it sound as though a company being profitable makes it automatically outrageous

What was outrageous with big oil was that it was barely tolerable that they made such a profit while buying oil while Americans were taking such a loss...buying oil, ontop of that they started giving hundreds of millions of dollars in fat retirement checks, even Orly was outraged and he rants about liberals and socialism constantly

However, that's not what tipped the balance, it was that rather frustrating situation combined with the fact that YOUR TAX DOLLARS AND MY TAX DOLLARS were PADDING THEIR PROFITS

Before you get into the numbers, it's the principle

I don't want one sixpence of my money going to a company to watch it laugh as it gets record breaking profits while I can barely fill up my gas tank, and then hands out retirement packages to CEOs like it was raining money

again you're missing the point, one company has 28% margins the other upper 10% margins (exxon mobil) Our tax dollars aren't padding their profits why do you look up the tax bill on COP, XOM or any other big energy company.

The board of directors is free to pay their CEO whatever they choose. 400M is absolutely assenine IMO but the guy led the company through extremely tough times and still managed to squeek out razor thin margins.

[Thorgrim]

if x is pre-tax profits, y is taxes, and z is subsidies and other government handouts to big oil

you are either saying
z=0
or
(x-y) > (x-y) + z

Both are false

Paying Z is an outrage to Americans, that is the difference

[6SpeedTA95]

Originally Posted by Thorgrim

if x is pre-tax profits, y is taxes, and z is subsidies and other government handouts to big oil

you are either saying
z=0
or
(x-y) > (x-y) + z

Both are false

Paying Z is an outrage to Americans, that is the difference

Dude you need to learn how business works and how income statements, balance sheets, etc work...NET INCOME is just that net income after all applicable subsidies, refunds, tax breaks, baby blood whatever else you wanna throw in there, thats why it is NET INCOME!

[Thorgrim]

Originally Posted by 6SpeedTA95

Dude you need to learn how business works and how income statements, balance sheets, etc work...NET INCOME is just that net income after all applicable subsidies, refunds, tax breaks, baby blood whatever else you wanna throw in there, thats why it is NET INCOME!

I'm not trying to set up a business, I'm trying to talk about the country as a whole

I didn't say "net income" I said pre-tax (pre-subsidy also, etc) income

The big oil bill was not called "Balance sheet act of 2007"

So is pre-tax/subsidy income minus taxes, plus subsidies greater or less than the aforementioned minus subsidies?

After the obvious answer is given, I am saying that most Americans do not want to give that amount to pad the incomes of big oil

[Pro Street]

Because BoA doesn't inflate prices due to politics

[AVengeance]

Originally Posted by Pro Street

Because BoA doesn't inflate prices due to politics

Oh, they don't?

[Pro Street]

Originally Posted by AVengeance

Oh, they don't?

no.

they do because of the economy.

But you won't see BoA raising fees and interest rates whenever we invade a country.

[6SpeedTA95]

Originally Posted by Pro Street

Because BoA doesn't inflate prices due to politics

Oil companies dont control the price of oil, if you used to work in the industry you of all people should know that.

[Pro Street]

Originally Posted by 6SpeedTA95

Oil companies dont control the price of oil, if you used to work in the industry you of all people should know that.

They do control production and refinement.

Yes, the price of crude is determined mainly by OPEC

[6SpeedTA95]

Originally Posted by Pro Street

They do control production and refinement.

Yes, the price of crude is determined mainly by OPEC

production and refinement, yes thats absolutely true but the underlying cost of gasoline is crude oil...also keep in mind its the government(s) that are not allowing these companies to increase their refining capacity.

[Pro Street]

Originally Posted by 6SpeedTA95

production and refinement, yes thats absolutely true but the underlying cost of gasoline is crude oil...also keep in mind its the government(s) that are not allowing these companies to increase their refining capacity.

Not giving them money is not what I consider prevention.

But we're getting off track here. A bank will make a ton of money, especially BoA who has a great track record. I myself have used BoA before and never had a problem with them.

they helped pioneer internet banking security, they have great customer service, and an excellent marketing campaign.. I feel they've performed well and if they do well because of it that's fantastic.

[6SpeedTA95]

Originally Posted by Pro Street

Not giving them money is not what I consider prevention.

But we're getting off track here. A bank will make a ton of money, especially BoA who has a great track record. I myself have used BoA before and never had a problem with them.

they helped pioneer internet banking security, they have great customer service, and an excellent marketing campaign.. I feel they've performed well and if they do well because of it that's fantastic.

Well the major energy companies are also pretty good companies that have pioneered the design of many plastics and make possible the widescale use of plastics and various syntehtics in our daily lives...

I just dont see how people can be all upset with energy companies making a 10% net profit and not give a damn when another huge company turns a 28% profit and its important to note that I'm ok with either company turning a profit.

[Pro Street]

Originally Posted by 6SpeedTA95

Well the major energy companies are also pretty good companies that have pioneered the design of many plastics and make possible the widescale use of plastics and various syntehtics in our daily lives...

I just dont see how people can be all upset with energy companies making a 10% net profit and not give a damn when another huge company turns a 28% profit and its important to note that I'm ok with either company turning a profit.

I dunno if people are upset over the profits as much as the reasons being costs