Bankamerica Corp Reports $1.1 Billion 2nd Quarter Loss
SAN FRANCISCO (AP) - A $1.1 billion loss was reported Thursday for the second quarter ended June 30 by BankAmerica Corp., the nation's second-largest bank holding company, reflecting its decision to increase loan-loss reserves to cover shaky Third World loans.
The company, which added $1.1 billion to its reserves, was among several major U.S. banks to report a large loss because of that accounting action. By sharply boosting reserves, banks reduce their current earnings but establish a cushion to protect future earnings from loans that must be written off or disposed of at a loss.
Bank America's $1.1 billion loss in the three months ended June 30 compared with a $640 million shortfall during the year-ago period.
For the first six months of this year, BankAmerica lost $1.07 billion, compared with a $577 million loss in 1986.
``Our results, like those of other major U.S. banking institutions, reflect the impact of significant increases in the allowance for credit losses related to …
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Publication information: Article title: Bankamerica Corp Reports $1.1 Billion 2nd Quarter Loss. Contributors: Not available. Newspaper title: THE JOURNAL RECORD. Publication date: July 24, 1987. Page number: Not available. © 2009 THE JOURNAL RECORD. Provided by ProQuest LLC. All Rights Reserved.