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BankAmerica 2 cents short
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January 19, 1999: 11:17 a.m. ET
$441M charge for NationsBank merger costs cited in 4Q shortfall
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NEW YORK (CNNfn) - BankAmerica Corp. reported fourth-quarter operating earnings Tuesday of $1.60 billion, or 91 cents per diluted share.
The earnings missed First Call analysts' estimates of 93 cents per share. A year ago, BankAmerica Corp. (BAC) earned $1.68 billion, or 94 cents per diluted share.
The results reflect both the former BankAmerica and NationsBank, which merged Sept. 30, 1998.
The Charlotte, N.C., multi-bank holding company took a $441 million after-tax charge to cover costs associated with the merger.
As a result, net income for the fourth quarter of 1998 was $1.16 billion, or 66 cents per diluted share, compared with $1.46 billion, or 81 cents per diluted share, a year earlier, when the company took a $220 million after-tax charge related to its merger with Barnett Banks.
For the year, BankAmerica's operating earnings totaled $6.49 billion, or $3.64 per diluted share, down from $6.81 billion, or $3.76 per diluted share, in 1997. Net income fell to $5.17 billion, or $2.90 per diluted share, from $6.54 billion, or $3.61 per diluted share, a year earlier.
The company said income fell below last year's because of reduced revenue from investment banking, trading and other market-related sources. Operating earnings represented a 14.12 percent return on equity.
BankAmerica also said it reduced its exposure to D.E. Shaw, a New York trading and investment company, during the fourth quarter and reduced its losses derived from that relationship below third-quarter levels.
BankAmerica shares were down 13/16 at 63-3/4 Tuesday morning. 
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BankAmerica Corp.
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