Bank of America (NYSE:BAC) shares were up more than 5% early Thursday after the company turned a 2010 fourth-quarter loss into a $2 billion quarterly profit in 2011.
The much-maligned banker, which lost about 60% of its value last year, rallied after meeting analyst expectations with Q4 earnings of 15 cents per share and beating estimates with revenues of $25.1 billion. The company had lost 16 cents per share in Q4 2010. Bank of America touted a 9% reduction in exposure to PIIGS countries — Portugal, Italy, Ireland, Greece and Spain — as well as a 13% jump in commercial and industrial loan balances.
BofA’s $1.4 billion full-year earnings also reversed a 2010 loss and beat expectations, but full-year revenues of $94.4 billion fell short.
Morgan Stanley (NYSE:MS) was up 5% on an earnings beat Thursday, a day after matching Goldman Sachs (NYSE:GS) with a 7% romp. Morgan Stanley reported adjusted EPS of 45 cents per share, crushing expectations for a 58-cent loss; MS also reported a nearly 50% drop in earnings per share for the full year, but its $1.26 EPS still were ahead of expectations for 72 cents.
– Kyle Woodley, InvestorPlace.com Assistant Editor