Business News
Bank of America, Wachovia report record profits
By DPA
Jan 23, 2007, 17:55 GMT

New York - Bank of America Corp, the second-largest US bank, said profits rose 47 per cent in the fourth quarter, while Wachovia Corp reported record quarterly earnings Tuesday.

Bank of America's net income climbed to 5.26 billion dollars from 3.57 billion dollars a year earlier, giving it a record 21.1 billion dollars in earnings for 2006. The Charlotte, North Carolina-based bank acquired MBNA last year, making it the largest credit card provider in the United States.

Wachovia's acquisition of Golden West Financial Corp in October led to a record 2.3 billion dollars in earnings for the fourth quarter, up 35 per cent from a year earlier.

Both companies' profits were far ahead of CitiGroup Inc's 3.5-per- cent quarterly earnings rise reported last week. The largest US bank said net income was 5.13 billion dollars in the fourth quarter of 2006, giving it 21.5 billion dollars in profits on the year - only 1.9 per cent higher than Bank of America's record year.

Citigroup on Monday said it was acquiring the mortgage lending division of Dutch bank ABN Amro.