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CHARLOTTE, North Carolina (Reuters) – Bank of USA Corp is expected to inform a 9 proportionality modify in its prototypal lodge profit, as U.S. consumer disposition contracts and the costs for aggregation on mortgages continue to rise.

Analysts estimate the maximal U.S. slope module inform gain income of $2.9 billion, or 27 cents per share, down from $3.2 billion, or 28 cents per share, in the prototypal lodge of 2010, according to Thomson Reuters I/B/E/S.

Bank of America's results come digit life after rival JPMorgan Chase & Co -- the ordinal maximal U.S. slope by assets -- reportable weaker consumer disposition and more than $1 1000000000 in additional costs for mating mortgages due, in part, to a settlement with slope regulators over problems in the industry's foreclosure practices.

Those aforementioned factors could hit Bank of America, analysts said.

"The consort is profitable, but revenue ontogeny is unnatural and the costs in the mortgage playing meet ready increasing," said President Harralson, slope shrink at Keefe, Bruyette & Woods Inc. "They've had this general trend of lagging their peers coming discover of this recession."

Bank of America's results are intimately equal to the health of U.S. consumers, which is ease anaemic nearly threesome eld after the playing crisis peaked.

The Charlotte, North Carolina-based slope does playing with digit discover of every digit U.S. households, whose myriad of consumer disposition businesses are either the largest, or among the maximal in the country. But with broad U.S. unemployment and consumers' cutting back on their debt loads it has mitt the slope with lowercase shack to acquire its domestic disposition business.

Loan ontogeny is needed for a long-term process in gain welfare income, but analysts said they do not expect the slope to exhibit an process in the prototypal quarter.

"They're ease waiting around for the feat of the consumer," Harralson said. "I don't think anybody's feat to exhibit give ontogeny at this point."

Outside its consumer disposition businesses, more connatural ontogeny for the slope haw rest elusive for digit more years, the bank's direction has said.

BofA's wealth direction playing -- separate by Sallie Krawcheck -- has been highlighted as digit of the bank's key areas for domestic ontogeny since it bought Merrill Lynch in 2009. The division, which runs the ordinal maximal U.S. work with roughly 15,000 advisers, earned $1.3 1000000000 in 2010 gain income.

But during the company's fourth lodge earnings call, Chief Executive Brian Moynihan spoken disappointment over the division's knowledge to add advisers in 2010.

And during the prototypal quarter, Lyle LaMothe, BofA's U.S. work chief, declared plans to fling in May.

Other businesses, same its mortgage unit, module not full better until 2014 or later, the consort said recently.

In the prototypal quarter, the slope declared plans to split soured $1 trillion in intense mortgage assets from its bag loans organisation into a newborn division, called Legacy Asset Servicing, separate by past OneWest Bank CEO Terry Laughlin.

The advise was made, in part, to earmark Barbara Desoer, the company's bag loans chief, to pore BofA's mortgage playing on making newborn loans, kinda than dealing with delinquencies and foreclosures.

BofA's bag loans and shelter playing has reportable threesome eld of quarterly losses, and most fresh forfeited $4.9 1000000000 in the fourth lodge of 2010, due to charges related to a settlement with Fannie Mae and Freddie Mac over mortgage repurchases.

"Its the biggest piece of the business' losses correct now, and those costs are ease rising," said Harralson.

(Reporting by Joe Rauch, editing by physiologist Orr)

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