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Bank Of America Q1 Profit Tops Estimates; Revenue Relatively Stable

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Bank of America Corp. (BAC) reported first-quarter earnings per share of $0.70, up 13 percent from $0.62, a year ago. On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.65 for the quarter. Analysts' estimates typically exclude special items. Net profit applicable to common shareholders increased year-over-year to $6.87 billion from $6.49 billion.

First-quarter total revenue, net of interest expense, was $23.00 billion compared to $23.07 billion, prior year. Analysts expected revenue of $23.3 billion for the quarter. Net interest income increased to $12.38 billion from $11.77 billion. Non-interest income was $10.63 billion compared to $11.30 billion. The Bank said its first-quarter revenue remained relatively stable as higher net interest income from increased interest rates and loan and deposit growth were more than offset by lower noninterest income.

For the first-quarter, provision for credit losses increased $179 million to $1.0 billion. Non-interest expense declined $618 million, or 4%, to $13.2 billion, for the quarter.

Average loan and lease balances in business segments rose $33 billion, or 4%, to $897 billion, for the first quarter of 2019. Average deposit balances rose $63 billion, or 5%, to $1.4 trillion.

"We reduced expenses by four percent from the first quarter of 2018, contributing to the seventeenth consecutive quarter of positive operating leverage. We'll add 350 financial centers in new and existing markets by 2021," Brian Moynihan, CEO, said.

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