The banking giant earned $6.3 billion in 2009 and repaid the TARP. The bank reported, “Credit quality showed signs of improvement in most portfolios compared with the prior quarter, although credit costs remained high as global economic conditions remained challenging.”
However, non-performing assets were 3.98% of outstanding loans, leases and foreclosed properties at year end, compared to 1.96% at the FYE 2008.
The Wall Street Journal reports that BoA’s investment banking arm is heavily reliant on underwriting stock offerings by commercial real estate firms, calling this business the secret to their success.
Meanwhile, BoA is the largest construction lender in the country with over $39 billion in construction loans outstanding.