Bank of America posts $1bn loss

Bank of America posted its second quarterly loss in less than a year as it suffered from consumer credit losses.

Bank of America posted its second quarterly loss in less than a year as it suffered from consumer credit losses.

The nation's largest bank reported a net loss of $1 billion, or 26 cents per share, for third quarter, compared with net income of $1.18 billion, or 15 cents per share, in the same period last year at the height of the financial crisis.

Bank of America's latest quarterly results come as US consumers, who compromise roughly 60 per cent of the bank's loan portfolio - from home mortgages to credit cards - are showing signs of continued weakness and an inability to repay debt.

The bank's Merrill Lynch unit made a positive contribution in the latest quarter. Bank of America said the unit boosted its overall results.

Bank of America shares fell 3.6 per cent to $17.45 in premarket trading.

The shares rose 29 per cent during third quarter, keeping pacing with the broader KBW Banks Index. But the shares are down 23 per cent over the past 12 months.

Reuters