Bank of America credit cards 20.3 billion goodwill impairment adjustment challenges facing the business structure

 However, goodwill impairment increased the scale of Bank of America credit card business is still displayed woeful. The retail sector has been the core of the Bank of America profit sector, its deposits, credit cards and home loans accounted for about half of U.S. banking income. According to the latest disclosure of the bank's quarterly data in 2010, its retail banking profit fell sharply by 21% to 16 billion U.S. dollars. Data showed U.S. retail banking losses from a year ago to 610 million down to 201 million, although the loss rate eased slightly, but still much higher than market expectations.

NEW YORK, Feb. 23 (Xinhua Yu Liang) Bank of America recently announced impairment of goodwill of its credit card business increased to 20.3 billion scale, it is the bank crisis has further aggravated the retail business performance. At the same time, the bank's brokerage and investment banking strength, but in strengthening the bank profit growth is expected to become heavy head. Bank of America, the challenges facing the business structure.

(This article Source: Xinhua)
sluggish performance of the retail business of Bank of America direct impact on profit for the year. According to the Financial Report, the bank 1.2 billion loss last year, $ 0.16 per share. Wall Street analysts generally believe that the data reflect the 2008 acquisition of Merrill Lynch Bank of America and other financial institutions after-effects. Can not get rid of the shadow in the case of mergers and acquisitions, this should be the highlight of the retail sector profits are not due to play an active role in this.

Stickler said, goodwill impairment is a non-cash items, it will not affect U.S. bank earnings results and strong capital position.

Stickler, Bank of America spokesman, said the launch of U.S. credit card bills and declining credit quality of the Bank of America increased the time scale of the main reasons for the impairment of goodwill. The U.S. government in May 2009 through the credit card bill, designed to control excessive credit card fees and interest growth.